“Blue-chips failed to track rises on Wall Street and in Asia and were marginally down in early trading with the market looking to the European Central Bank's monetary policy meeting accounts and US jobs data later,” says AJ Bell Investment Director Russ Mould.
“The post-EU referendum slump in sterling is taking its toll on low-cost airline easyJet which has warned full-year profits will be below forecasts despite record passenger numbers and higher load factors during the summer. The airline has been buffeted by foreign exchange headwinds which look set to continue into 2017 with the pound’s weakness against the US dollar affecting the cost of fuel. Bookings, though, are in line with a year ago with around 45% of seats sold for the first quarter. easyJet was the FTSE100’s biggest faller in early trading, down more than 5.5%.
“DFS Furniture has delivered another set of record results and as the market still remains some 20% smaller by value than at its peak in 2007 there is scope for continued growth once uncertainties surrounding Brexit are resolved.
“The Indian summer sent a chill through the homewares market and Dunelm’s revenues fell by 1.8% in its first quarter. The hot spell reduced footfall at its out-of-town superstores but the group continues to see good growth in its online business. Dunelm will be looking forward to a stronger second quarter as it continues to invest in extra seasonal space, new till systems, store refits and new store openings and it should also benefit from weaker comparatives. Dunelm was the FTSE250’s biggest faller, down more than 4.1% in early trading.”