important events
European stock markets started Monday morning with fairly quiet trading.
Kingfisher was one of the biggest losers on the FTSE 100 index, but it was still only down 0.6%.
Below is the opening snap via Reuters.
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European STOXX 600 flat
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UK FTSE 100 flat
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France's CAC 40 flat, Spain's IBEX down 0.2%
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Euro STOXX Index and Eurozone Blue Chip Flat
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Germany's DAX rose 0.1%
B&Q owner Kingfisher warns of slump in 2024
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The B&Q owner said it expected profits to be lower than analysts expected as it waits for DIY demand to recover as the housing market improves.
Kingfisher, which also owns Screwfix and France's Castrama, said on Monday that its annual sales to the end of January were down 1.8%, with sales specifically falling 4.3% from November to January.
DIY has become a big boom during the lockdown due to the coronavirus pandemic. Remember when DIY stores were one of the few retailers allowed to open in the UK due to their essential maintenance role? Huge sales from customers in lockdown have sparked excited talk about a “new generation of his DIY enthusiasts”, but that doesn't seem to be materializing financially. Kingfisher's stock price is only slightly higher than it was at the start of the pandemic.
Thierry GarnierThe company's CEO said that in France, “the market is affected by a decline in consumer confidence,” and the company is cutting costs, including new plans to reduce the floor space of its Castorama stores. He said he was forced to do so.
However, the big problem is the housing market in major countries. My biggest inspiration for DIY is buying a new home. Garnier said:
Looking ahead, we remain confident in the home improvement industry's attractive growth prospects and our ability to grow ahead of the market. In the short term, repair, maintenance, and remodeling activity for existing homes continues to support strong demand, but there is a disconnect between housing demand and home improvement demand, so we are cautious about the outlook for the overall market in 2024. It has become.
Oil prices rise as investors focus on supply risks
Oil prices rose 0.6% on Monday, pushing back toward a four-month high hit last week amid supply concerns.
Global benchmark Brent crude oil futures rose 0.5% to over $86 a barrel after the weekend market pause, while North American benchmark West Texas Intermediate rose 0.5% to $81 a barrel. exceeded.
Russia's full-scale invasion of Ukraine in 2022 would cause the biggest global energy market shock in decades, and Israel's shelling of the Gaza Strip in the months since the Oct. 7 Hamas attack There have been concerns for months that the fighting could spread to other regions. It affects the Middle East and affects oil producers.
Hiroyuki Kikukawa, president of NS Trading, a division of Nissan Securities, said the following (via Reuters).
Rising geopolitical tensions, increased attacks on energy facilities in Russia and Ukraine, and diminishing hopes for a ceasefire in the Middle East have heightened concerns about global oil supplies.
agenda
9:30 a.m. (Greenwich Mean Time): UK consumer card spend analysis
11am (Greenwich Mean Time):Confederation of British Industry Retail Survey (March, previous: -7 points)