M&S and Tesco shares fall as inflation risks dampen holiday cheer

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good morning.

There is bullish trading data from Marks & Spencer and Tesco this morning, with both companies hailing bumper sales over Christmas.

M&S said food sales increased 12.4% against pre-Covid levels in the 13 weeks to January 1, beating market expectations of 10% growth. Apparel and home sales also beat expectations.

Tesco reported an 8.8% increase in holiday sales from two years ago, reaching its largest market share in four years.

Both companies said full-year earnings would meet or exceed previous expectations.

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What happened overnight

Asian markets were mixed on Thursday as traders struggled to maintain the bullish momentum of the previous day. Interest rates rose in Hong Kong, Sydney, Taipei and Manila, while Singapore and Wellington were steady, and Tokyo ended the morning lower as the strong yen affected exporters, with slight declines in Shanghai, Seoul and Jakarta.

Coming Soon Today Companies: Asos, Dunelm, Halfords, Hilton Food Group, John Wood Group, Marks & Spencer, Persimmon, Safestore Holdings, Taylor Wimpey, Tesco (trading update) Economies: RICS (UK) house price balance, Bank of England credit Conditions Survey (UK), Trade Balance (China), Producer Price Index (UK), Unemployment Claims (UK).

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