HIGH street retail giant Next releases its latest trading statement tomorrow and the statement should give some insight into whether the company feels that the man on the street is more optimistic than he was six months ago or if concern about government cuts is still curbing our spending at the tills.
Next had a tricky start to the year – the company felt that plenty of consumers were still cautious about spending at the same rate in years gone by – but its share price rallied to reach its best level in two years in April. Wider market weakness dragged the stock back lower but a positive update could be good for the retailer. The IG Markets CFD spread is 2,185p-2,187p.
London-listed SABMiller, one of the world’s largest brewers, is scheduled to report its earnings today. The stock has rallied 9 per cent since 1 July and is currently trading near the key trend line resistance of 1,980p. Markets are anticipating better-than-expected results thanks to World Cup revenue. A close above 1,980p would open up an initial target of 2,040p with major resistance at 2,080p. Technical support for the stock is eyed at 1,900p and 1,840p. Spread Co quotes SABMiller at 1,970.50p-1,974.50p.
The banking sector has been enjoying bumper profit announcements, with HSBC yesterday announcing a doubling of its profits in the first half of 2010. More of the same could be expected from the other UK banks and Barclays was one of the few banks that avoided a government stake holding. Capital CFDs quotes 339.4p-340p for Barclays and 677.3p-678.3p for HSBC.
Also look out for Lloyds Banking Group’s results today – any hints about repaying the government its 41 per cent stake should cheer up the shareholders. Cantor Index offers a spread of 72.26p-72.52p.
Today also sees the interim results of 888 Holdings, one of the largest online gaming firms. Its last trading update in May was weak and its online poker business had suffered. But having recently signed a contract with MTV Networks, it is expected to be more optimistic about its outlook. Cantor Index offers a spread of 48.59p-49.25p.
Risk assets were hugely in favour with investors yesterday and sterling was a particular beneficiary of continued confidence. Cable breached a five-and-a-half month high after a big move to the upside and so $1.6000 is well and truly in its sights. Capital CFDs quotes a price of 1.5865-1.5867 for sterling-US dollar.