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FTSE in ‘consolidation mode’

by LLB Reporter
2nd Aug 22 11:51 am

The FTSE 100 was in consolidation mode on Tuesday morning, trading broadly flat but avoiding the falls seen in Asia overnight

As if the market needed something new to worry about, there is now renewed concern about relations between the USA and China as Nancy Pelosi is primed for a visit to Taiwan.

Despite tight household budgets people still seem to have enough in their pocket to grab a can of their favourite fizzy pop. After strong numbers from Coca-Cola and PepsiCo, Irn-Bru maker AG Barr has followed suit. The company remains confident in its full-year forecast, despite the pressures from higher input costs, as a hot summer and a recovery in out-of-home trade help to lift sales.

“A £20 pizza may feel like a rather less affordable treat to many people, however, and there were some signals in Domino’s latest numbers to worry shareholders,” says AJ Bell investment director Russ Mould.

“Rising costs took a slice out of first half profits and the company is upping marketing spend in the second half to generate more custom.

“There is always a slightly concerning situation if a company finds itself needing a strong second half to meet full year forecasts, often the recipe for an eventual profit warning.”

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