0855 GMT - Shares in ASOS slump 11% after the online fashion retailer said coronavirus uncertainty and bad weather hit demand last month and forecast continued volatility in the short term. RBC Capital Markets says the company's retail sales between March and June were 3% below the brokerage's forecast and it expects a 1-2% reduction in full-year consensus revenue expectations. Still, ASOS has the most attractive risk/reward profile in the sector and solid revenue rises and margin expansion look set to boost the shares, which have fallen despite a better long-term outlook, RBC says. (philip.waller@wsj.com)
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Brent Prices Likely to Rise on Expectations of OPEC+ Deal
0834 GMT - Brent prices are likely to rise amid expectations that OPEC+ will soon agree on an oil production deal, easing fears of a price war or insufficient production growth, Goldman Sachs says. While details of such a deal aren't confirmed, Goldman expects Brent prices to be supported. "All else equal, this would represent $2 to $4/bbl upside risk to our $80/bbl summer and $75/bbl 2022 Brent price forecasts," it says. Front-month Brent falls 1.5% to $73.64/bbl in Asian afternoon trade, taking year-to-date gains to 42%. (yongchang.chin@wsj.com)
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Strong UK Wage Growth Signals Inflationary Pressures Are Building
0819 GMT - Headline wage growth in the U.K. accelerated in May to 6.6% from 5.7% the previous month, excluding bonuses. While much of this is due to base effects after last year's drop, the level of wages has recovered beyond the pre-pandemic trend even though the labor market hasn't fully recovered from the Covid-19 shock, Kallum Pickering, senior economist at Berenberg, says. Risks to the wage-growth outlook are skewed to the upside due to demand for workers, which contributes to higher price pressures, he says. "To the extent that there is a degree of mismatch between the labor that firms demand and the skills of unemployed workers, this will increase the level of unemployment at which wage growth accelerates," Pickering says. (xavier.fontdegloria@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
07-15-21 0525ET
