Market Report

UK markets showed mixed results on Tuesday, while European markets experienced gains. However, these gains were reduced in the afternoon trading session after the U.S. producer price index came in below forecast.

In the United States, attention is focused on the upcoming release of wholesale price data ahead of Wednesday’s consumer price index report. According to the Bureau of Labor Statistics, producer prices rose by only 0.2% in December, which was below the Dow Jones forecast of 0.4%. Following this release, U.S. stocks rose as concerns over a significant rise in inflation were alleviated.

Gold prices remained almost unchanged as market participants awaited key U.S. inflation data, which may provide more insight into the U.S. interest rate trajectory.

Oil prices declined, following a rise to four-month highs the previous day, due to the market's focus on the impact of new U.S. sanctions on Russian oil exports to major buyers India and China.

In company news, JD Sports Fashion's full-year profit forecast dropped after revenue fell 1.5% in November and December due to a challenging market. The group now expects a pre-tax profit between £915m and £935m, down from the previous £955m to £1.035bn.

Games Workshop's stock declined despite record first-half results.

Shares in Persimmon surged, with its full-year pre-tax profit expected at the upper end of market forecasts, driven by a 7% rise in home completions to 10,664. Private home completions increased by 18% to 9,075. The expected profit for 2024 is between £349m and £390m.