US jobs data supports stocks, Superdry’s balance sheet boost

“The US jobs release reaffirmed its credentials as one of the most influential bits of economic data as Friday’s better than expected picture helped set the tone for the start of this week,” says AJ Bell Investment Director Russ Mould.

“The FTSE 100 was more than 1% higher and within touching distance of the 6,100 mark as investors brushed off mounting tensions between the US and China and fears of a second wave in the coronavirus pandemic.

“However, any gains feel fragile at the moment and amid the thinner trading volumes typically seen over the summer, it may be that there is more volatility on the way.

“Gold remained above $2,000 per ounce, reflecting the nervousness which continues to simmer away in the background."

Superdry

“The FTSE 100 was more than 1% higher and within touching distance of the 6,100 mark as investors brushed off mounting tensions between the US and China and fears of a second wave in the coronavirus pandemic.

“However, any gains feel fragile at the moment and amid the thinner trading volumes typically seen over the summer, it may be that there is more volatility on the way.

“Gold remained above $2,000 per ounce, reflecting the nervousness which continues to simmer away in the background."

“Founder Julian Dunkerton’s return to Superdry has not been as glorious as he would have hoped. Even before Covid-19 intervened, devastating the retail sector, he had struggled to arrest the decline which appeared to set in after his previous departure.

“While the big falls in revenue over recent months would largely have been expected there was some good news this morning as the firm secured some breathing space with its fresh asset-backed lending facility.

“The strong web-based sales, while a natural offshoot of lockdown, at least suggest that this part of the business is operating as it should and able to respond to a rapid increase in demand in timely fashion.

“With the immediate issue of survival seemingly addressed for now, attention will turn back to Dunkerton’s efforts to restore the brand’s appeal and credibility among shoppers.

“The fear for shareholders is that its traditional customer base may just have tired of its faux-Japanese stylings and moved on.

“Dunkerton will have to demonstrate to the market that there is some light at the end of the tunnel as he looks to set the business on an upwards trajectory or investors may run out of patience.”

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