Oil price jumps, Greggs shares fall, value of UK IPO deals up on previous year and Nike set for first update since announcing new boss

“No one will overlook the human cost that will be the result of rising tensions and increased violence in the Middle East but there will also be economic ramifications if things intensify further. The price of oil has jumped 3% and on London’s blue chip index big oil giants and defence stocks like BAE Systems have been in favour today,” says Danni Hewson, Head of Financial Analysis at AJ Bell.

“The last couple of years have taught us all about the impact a jump in a barrel of the black stuff can have on inflation and the smouldering embers could reignite quickly if supply chains are further compromised.

“It’s on days like these investors retreat to stalwarts like utilities and safe havens like gold which has also edged up 1% today.

“Among the day’s big losers was high street favourite Greggs which disappointed its fans by failing to maintain the growth trajectory it’s been enjoying. It might seem churlish that investors are punishing the baker for only serving up 5% growth in like-for-like sales, a figure many of its competitors would salivate over. But it might need to take a page out of retailer Next’s book and learn to manage expectations with the same dexterity it displays in its recipe choices.”

IPOs

“London markets have taken a good kicking over the past couple of years over its seeming lack of oomph when it comes to attracting new listings. It’s been perceived as old fashioned and undervalued but perhaps its strengths have also been under appreciated.

“The value of deals completed in the first nine months of the year is up 48% to nearly £20 billion compared to the same period in 2023 and, crucially, London has eclipsed other European markets which have been dogged by political instability (according to data from Dealogic). A key moment of 2024 was the debut of small computer developer Raspberry Pi showing that the UK can do tech.

“Can the momentum be maintained over the last quarter of the year despite global uncertainties and a little thing called the Budget? Certainly, falling interest rates should help tempt more investors back to equities and potentially push companies that had shelved IPO plans to dust them off.”

Nike

“As the bell rings to start the new earnings quarter Nike’s not expecting to get out of the gates with any kind of speed.

“The sporting goods giant has had to battle increased competition from newer, sexier brands and a consumer not inclined to shell out on anything but those must buy items. Nike’s size was instrumental to its global dominance but has also weighed it down, making it harder for the company to react to changing markets.

“The company knows it has its work cut out and is bringing back an old face in Elliott Hill to head up the fight back. In what has been an incredible year of sport, the fact Nike isn’t riding high will have sounded alarm bells and the turnaround isn’t expected to be swift.”

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