CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

FTSE Rallies After Solid Retail Sales

Article By: ,  Senior Market Analyst
November 20, 2020 4:10 AM
European bourses are heading out of the blocks on the front foot despite a mixed session on Wall Street overnight. The markets remain very much stuck balancing vaccine optimism against near term economic fallout that covid and the lockdowns imposed to stem the spread of the virus are causing. Although better than forecast UK retail sales have given the FTSE a solid leg higher.
Retail sales surge
The FTSE is one of the better performers in Europe following significantly stronger than expected retail sales data. Retail sales +1.2% MoM in October well above the 0% increase expected. Retail has seen a remarkable recovery from the March / April collapse in sales. Even as parts of the UK economy saw lockdown restrictions tighten in October, consumption remained strong, an encouraging sign for retailers. Retail sales are now a solid 7.8% higher than a year earlier, whilst the UK economy still remains 8% below its pre-virus size.
The upbeat data has boosted retailers with the likes of JD Sport, Next and Burberry putting in solid performances.
However, with lockdown 2.0 upon us the question is whether retail sales can produce an equally impressive rebound after this lockdown? The fear is that this latest lockdown will amplify the growing gulf between online stores and bricks and mortar. 

Sage dives 10% on margin concerns
Sage is a notable decliner despite lifting its dividend after reporting an 8.5% rise in recurring revenue to £1.6 billion, thanks to a boom in subscriptions growth of 20.5%. However, 2021 recurring revenue forecast is lower at 2% -5% and concerns over declining profit margins, a trend which is set to continue unnerved investors. The stock dived 10% in early trade.

FTSE Chart


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024