Next up as global markets run red on US worries

Added 2nd November 2016

Global markets were a sea of red on Wednesday morning, as investors grew increasingly worried about the US election. But there were pockets of green to be found in some of the more domestically focused areas of the UK market.

Next up as global markets run red on US worries

Prime among these was retailer Next, whose stock jumped over 4% on poor but better-than-expected cost savings in its latest trading update.

According to the firm, full price sales for the year are 1.5% lower than the comparable period last year.

For the full year, the firm narrowed its sales guidance from -1.75% to 1.25%, which moved the mid-point of the range slightly lower, but it also said that cost savings were better-than-expected, which allowed it to keep its central profit forecast unchanged at £895m.

Housebuilder, Persimmon’s shares were also in the green, up 1.3% at the time of writing on the back of a solid set of numbers in the months following the EU referendum.

As Joshua Mahony, market analyst at IG said: “Amid a market expectation of deterioration, the likes of which we saw in UK manufacturing yesterday, this morning’s rise for the construction industry provides a timely boost for UK PLC.

However, he added: “With today’s Nationwide housing report highlighting a slowing market (0% growth in October), the fact that today’s construction PMI rise was driven by residential work points towards a continued rise in housing supply ahead.

Other big movers on the morning were security firm G4S which was up over 8.7% on news of £1bn in new contracts, miner Petropavlovsk which was 4.8% higher and Sports direct, also over 4% higher.

On the downside, Standard Chartered was the biggest large-cap faller, down just less than 3.5% on the day.

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About Author

Geoff Candy

Group digital editor

Geoff Candy joined Portfolio Adviser as News Editor in May 2014. He has been a financial journalist and broadcaster since 2005 and, in that time has worked in both South Africa and the Netherlands, covering everything from high street retailers and construction companies to mining and insurance.

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