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At 12.25pm on Monday, the UK market traded 0.4% ahead at 7,120. Miners and oil stocks were in the lead, while construction and gambling companies were out of fashion.
UK investors might be concerned by comments made over the weekend from Bank of England policymaker Michael Saunders. He argued that the rapid rise in energy markets coupled with labour shortages are fueling inflationary pressures and suggested that market fears over interest rate rises were justified.
In Asia, Hong Kong's Hang Seng index jumped 2% as investors flocked to buy tech stocks which had been sold off in recent months due to regulatory pressures.
Shares in fashion retailer ASOS fell 14% to £23.98 after it reported a rise in annual profit but forecast slower growth for its new fiscal year. Chief executive Nick Beighton stepped down with immediate effect after 12 years with the firm and six as the company's boss.
For the year to 31 August 2021, adjusted pre-tax profit rose 36% to £193.6 million as revenue increased 22% to £3.91 billion. Looking ahead to fiscal 2022, adjusted pre-tax profit is now expected in the range of £110 million £140 million, around a third lower than the market consensus forecast while sales growth was expected to be in the range of 10% and 15% with first-half revenue growth in mid-single digits.
Ingredients supplier to the food and beverage sector Treatt said it expected its annual revenue to rise around 14% to £124 million. The company said it had a 'positive outlook' for the current financial year. The shares rose 2.4% to £10.60.
Banknote verification business Spectra Systems increased its profit guidance for 2021 after one of its long-standing central bank customers placed a new order. This year's order is 50% higher than the typical orders with the exception of the large 2020 order during the peak of the pandemic, Spectra said.
Based on the size of this order Spectra is confident that it will exceed 2021 profit before tax and amortisation expectations for 2021. The shares advanced 1.4% to 156.12p.
Global payments group Equals confirmed that the record start to the third quarter of the year had been sustained throughout the remainder of the period. For the three months to 30 September 2021, the run-rate increased 62% year-on-year, and 47% on the pre-Covid comparative period. The shares were trading 5.4% higher at 64.3p.
Networks company CyanConnode reported higher revenue in the first half of the year as new business wins boosted performance. For the six months ended 30 September 2021, turnover was £4.1 million, 2.7 times higher than the equivalent fiscal 2021 period, as cash received from customers rose 2.4 times to £3.8 million. The shares were trading 3.7% higher at 12.7p.