Monday,15 January 2024 16:48:06

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Monday,15 January 2024 at 16:48

UK & European stocks were lower as investors gear up for the World Economic Forum in Davos, Switzerland.

The dollar ebbed on renewed expectations of a rate cut by the Federal Reserve in March.

Oil prices closed lower.

Gold prices edged up, holding above the $2,050 level on safe-haven appeal from elevated tensions in the Middle East and on renewed bets for an early rate cut by the U.S. Federal Reserve.

Burberry slumped after Goldman Sachs cut its stance on shares of the luxury fashion brand to ‘neutral’ from ‘buy’ and slashed the price target to 1,663p from 2,345p.

Goldman said it continues to like the long-term growth opportunity at Burberry, but it has been too optimistic on the pace of the life-for-like acceleration and required levels of investment to support it, which delays its margin expansion thesis.

"Our prior positive stance on the investment thesis at Burberry was based on new product driving an acceleration in LFL growth and improved store densities, which in turn drive margin expansion," it said.

"Whilst management reiterated its £4bn revenue ambition in the trading update (12th January) we expect it will take longer than initially planned."

Markets

the close

FTSE 100 7,594 (-0.39%)

FTSE 250 19,200 +0.02%

DAX 16,626 (-0.45%)

16:45

Dow Jones 37,592

S&P 500 4,783

NASDAQ 14,972

Fixed Income

UK 10-YR YIELD 3.801

Exchange Rates

GBP/USD 1.273

GBP/EUR 1.162

Commodities

Gold $2,054 +0.28%

Brent $78.20 +0.07%

Important - No news or research item should be construed as a recommendation to trade. The inclusion of securities within this report does not necessarily imply their suitability for individual portfolios or situations in respect of which further advice should be sought. Information contained in this report has been compiled from sources believed to be reliable but is not warranted to be accurate or complete.