JD Sports speeds up, Acacia beats guidance
London open
Traders expect the FTSE 100 is expected to fall by around 26 points on Monday, having finished last week at 6,918.18.
Stocks to watch
Sales growth picked pace over Christmas at JD Sports Fashion, with the retailer also encouraged by the performance in the US as it integrates its Finish Line acquisition. Total like for like sales growth in the Sports Fashion for the 48 weeks to 5 January topped 5%, up from 4% in the first half of the year, while gross profit margins were maintained at prior year levels.
Acacia Mining reported gold production of 130,581 ounces for the fourth quarter, bringing the full year total to 521,980 ounces, “substantially ahead” of initial production guidance for the year of 435,000 - 475,000 ounces.
Dechra Pharmaceuticals said trading in the six months to 31 December was "strong" and in line with management expectations. The group reported net revenue for the period up 18% at constant and actual exchange rates.
Newspaper round-up
Brussels expects Britain to ask for an extension to Article 50 to allow Brexit to be delayed if the House of Commons rejects Theresa May’s deal tomorrow. EU officials anticipate more parliamentary political turbulence for the prime minister after the expected request to extend the two-year exit process, which would delay Brexit day for months beyond March 29. - The Times
A daring rescue attempt being drawn up to save Debenhams from going bust could cost more than 10,000 job losses, dealing the biggest blow to the high street since the collapse of BHS. The chain has earmarked as many as 90 of its high street stores for closure, more than half the current total, as part of a radical turnaround plan. - Telegraph
British banks have suffered their first drop in demand for five years as Brexit uncertainty, regulation and market volatility took their toll. The latest CBI/PwC Financial Services Survey showed the financial services sector had a difficult end to 2018, with just 24% of firms reporting a rise in business volumes in the three months to December, compared with 32% having experienced a decline. - Guardian
US close
US stocks snapped a five day winning streak on Friday as investors paused for breath following a roughly 10% rally from the lows hit on Christmas eve, as investors wondered aloud regarding the staying power of recent gains.
Market participants were also keeping a nervous eye on the news-flow surrounding the partial shutdown of the US federal government, amid speculation that President Donald Trump might opt to invoke a 'national emergency' in order to break the impasse.
Against that backdrop, the Department of Labor reported a drop in the year-on-year rate of increase in headline US consumer prices from 2.2% in November to 1.9% for December, alongside a 'solid' reading on core CPI which remained at 2.2%.