Trade Setup for Monday UK
The UK market has been absorbing earnings releases along with the ejection of Theresa May’s Brexit deal. On February 15, 2019, stocks remained steady early Friday while the market took in the news of the latest on Brexit and also kept an eye on the UK retail revenue data.
So what is the investor expectation and how you should be prepping for the day’s trades?
Top 10 Things to Do Before Opening Bell
- Do not panic sell owing to Brexit
As Motley Fool’s Andy Ross states – It’s important to start looking beyond the Brexit affected trades. It makes sense to look for great businesses to stay invested in. Global mining companies are a great place to start. Rio Tinto (LSE: RIO) is a preferred start
- Look at Dividend Shares
HSBC (LSE: HSBA) and Barclays (LSE: BARC) are about to come with their full-year results on February 19 and 21, respectively. HSBC has been doing well with profits in private and commercial areas. Barclays has slipped in terms of its revenue numbers and it share prices edging lower. Yet both stocks offer good long term value.
- Look out for Major earnings releases
You can look forward to major earnings releases of Reckitt Benckiser, McColl’s Retail Group and City of London Investment Group.
- News Across the Atlantic
Developments across the ocean to watch US President Trump sign a deal to on the compromise deal of spending to avert a government shutdown.
President Xi Jingling’s trade talks with the US are expected to conclude. Investing community is watching this closely to ensure to deliver a progress for 60 days extension.
- News over the weekend
Showdown expected with campaigners who are against Theresa May’s “my deal or no deal” approach of Brexit strategy. With just 6 days remining when UK exits from the EU, this mobilization of politicians and people is expected to get a huge congregation.
- Government Costs
Brexit has cost £800 million a week ever since the referendum has begun and a no-deal on March 29 is expected to bring in an emergency interest rate cut to help the economy cushion up. There could be a possible disruption of the economic status quo and a pause in the monetary stance of the government.
Reported over the weekend, Interserve will be forced with immediate effect to hand over £66 million to its lenders as the largest shareholder tries to change the debt- for equity rescue deal. The government contracting company which is reeling with financial issues could also be maid responsible for payments worth tens of thousands of pounds in the event of its finance officer Mark Whitening being ousted by the shareholder – Coltrane, a New York based hedge fund.
Over the weekend the company announced predicted a peak in the global demand for oil and a crackdown on plastic wastage.
- Weakening Economy
Taking cues from low inflation and a growth of just 0.2%, even though Britain was the third fastest growing economy among with five big EU countries, it needs to put the Brexit disaster cues behind and focus on corporate profits.