Industry Comment: Next Soars On Good News
Chris Beauchamp, Chief Market Analyst at IG, discusses trading agendas:
“In mid-morning trading (29 July) the FTSE 100 is twenty points higher, lifted by a positive outlook from retailer Next.
“Big earnings, a Fed decision, and appearances from tech CEOs in front of US lawmakers are all on the agenda for today, so it is not a surprise to see markets struggling to make gains.
“The FTSE 100 has pushed valiantly into positive territory, but even here the index is merely bouncing from the lower end of its current trading range.
“Another quiet morning for data leaves investors waiting for the US session to begin, with 48 hours packed full of news to help put the market on a more directional footing. But will it be higher or lower?
“There is enough happening to provide fuel for a move in either direction, particularly as August nears and volumes drop. As a result many will likely step aside to let the market set the tone, with a clearer picture likely to emerge perhaps by Friday, and if not then early next week.
“We are a long way from a normal world, but flickers of our pre-Covid existence do come along now and again.
“One such flicker has been Next, which has surged by over 6% as it issues an update that looks more like the RNS of old. While it suffered a sharp drop in sales, things are headed in the right direction.
“It speaks volumes that the firm expects to make a profit even in its pessimistic scenario, with the online arm doubtless doing much of the heavy lifting here.”