The FTSE 100 outperformed other European markets due to renewed expectations of interest rate cuts, despite disappointing economic data. The benchmark index is trading above 8,200, the highest level since late October, with more than 10% of its constituents recording gains of over 3%. Retail sales declined 0.7% in October, a much larger drop than the expected 0.3% decline, following a 0.1% rise in September. S&P Global PMI readings for Manufacturing and Services unexpectedly declined in November, and the Composite reading also unexpectedly slipped into contraction territory.Single Stock Stories:
Shares of British retailer DFS Furniture increased by 1.7%. The company says order intake continued to grow over the first 20 weeks of the half-year, in line with its expectations. DFS Furniture has appointed Marie Wall as interim Chief Financial Officer, effective from December 2. Marie Wall has previously held senior finance roles at Imperial Brands, Wolseley, and Dixons Carphone. There is great operational gearing here, and if trading at Christmas surpasses last year, we could be in upgrade territory. The stock has risen approximately 11% year-to-date.
Broker Updates:
According to a survey by JPMorgan that surveyed 5,000 consumers across Germany, France, Spain, UK and U.S., the UK consumer appears weaker compared to other countries. The survey found that 50% of UK respondents feel worse off financially after the Labour Budget, while only 14% expect to be better off. As a result, UK consumers expect to spend less on discretionary items in the near future. JPM maintains its preference for Marks & Spencer in the UK, with an overweight rating, and reiterates its negative stance on UK home improvement company Kingfisher, which has an underweight rating. In food retail, downtrading continues, but JPM says the survey results read positively to Tesco, which they are underweight on, suggesting the consumer finds value in its proposition.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225
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