Here’s what’s driving Taylor Wimpey and Ladbrokes Coral

European markets opened relatively flat Monday, with the FTSE 100 the main beneficiary after sterling’s latest fall, as pressure mounts on Theresa May who is struggling to maintain her grip on power. However, buying had dried up by lunchtime and the bears are back in control.

The gravity defying US market has been the driving force behind surging global markets, so investors will be hoping that the Republicans can get their act together and deliver key US tax reform to help support the path of growth.

In sharp contrast to Persimmon's (PSN) lacklustre results and a gloomy report from the RICS last week, Taylor Wimpey's (TW.) trading update is much stronger and paints a relatively rosy picture of the current housing market.

Confirmation of favourable market conditions and high demand for new houses is good, although there are early warning signs that the situation might deteriorate, with slowing sales rates and a drop in its order book.

Share prices have already come off recent highs, amid fears that the sector had got ahead of itself, and investors will be hoping for more help from the Chancellor in next week’s Budget to try and provide a new catalyst for the industry.

Gambling companies have been making out like one armed bandits since the summer, as expectations grow that the government will compromise on a much higher figure for fixed-odds betting terminals than the £2 maximum suggested during this year’s election campaign.

However, while betting shops are the focus of attention for politicians, the real action can be found on smartphones and elsewhere – with surging revenues and profits being driven from online betting.

Companies who have got their online strategy right are the significant winners and, although Ladbrokes Coral (LCL) has seen a 12% jump in digital revenues, the comparison against online competitors such as bet365 and Sky Bet, who both reported huge revenue growth last week, has left the market slightly disappointed and sent the share price lower.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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