FTSE up as banks and miners recover, while TUI jumps on positive update

Discussion in 'Market News' started by Lily, Sep 28, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Hopes of a Deutsche Bank recovery and RBS fine news lift financial sector

    Leading shares have moved higher after recent uncertainty, lifted by a revival in Deutsche Bank and rising commodity prices.

    Travel group TUI is among the biggest gainers so far, up after it raised its profit guidance for the year. It said it expected 12%-13% growth compared to an earlier estimate of a 10% rise. Holiday firms have been hit by fears of terrorist attacks, and concerns about a falling number of UK tourists, thanks to the weakness of the pound following the Brexit vote. But TUI said bookings from Britain were up 5% in the summer, defying these fears. It is also less exposed to troubled Turkey than rival Thomas Cook. Analysts at Stifel said:

    In the UK market, demand has remained resilient with TUI benefiting from its positioning in the upper end of the mass market with a product offering which has improved in recent years. Neither Brexit nor the weakness of sterling appears to have impacted demand with revenues and bookings up 5% for Summer 2016. In Germany, while market conditions are difficult, TUI has increased market share and benefited from its more integrated model. Losses in France should be materially reduced from the €40m incurred last year, but against this profits are expected to be lower in Nordics, largely as a result of reduced demand to Turkey and the contribution from Belgium will be impacted by the attack at Brussels airport.

    European equity markets are positive, following oil prices higher, as investors eye Algiers in the hope that today’s OPEC meeting will reach some compromise. Although an agreement to curb output today would be a major surprise, the debate may pave the way for a potential deal at their next meeting.

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