11 July 2017 by lberuti
It was another session spent in a very narrow trading range. At the moment, it seems that credit is struggling to rally and struggling to sell-off. The earnings of MARSPE ( Marks and Spencer Group Plc ) provided a bit of excitement though. The company reported first quarter results that got investors worried as they showed a slowdown in food, where growth had been a bright spot over the last few years and whose expansion has compensated for shortcomings in the clothing department. Same-store sales fell 0.1% - the second in succession after last quarter 2.1% decline -, missing analysts’ estimate for a 0.6% gain, as they expected a boost from a late Easter and surging inflation. The company also joined rivals in warning over tough conditions on the high street as it said consumer confidence had taken a turn for the worst in recent weeks. We should get more insight as other retailers will be reporting in the coming days, but MARSPE was the laggard on the consumer cyclical sector. Its 5-year risk premium widened 3.5.bps to 145bps.