Daily market update: markets rebound, B&M, The Works, Wickes

Donald Trump’s TACO bell has rung once again, much to the joy of financial markets.

Trump has form in chickening out of his threats, and investors are pleased he confirmed no plans to use military action to take Greenland or to impose new tariffs on parts of Europe.

Following a strong session for Wall Street last night, Asian and European markets regained their poise as investors breathed a sigh of relief over conflict de-escalation.

There are a lot of similarities with the Liberation Day market wobble in April 2025 and now. In both situations, Trump took an aggressive stance and then backed down after financial markets wobbled. The US president has a keen eye on what happens with bonds and stocks, and the last thing he wants is to be accused of destroying people’s wealth.

The Greenland situation may have calmed down, but there are still enough unanswered questions to throw caution to the wind. It’s more about financial markets regaining balance than moving into top gear.

Gold’s rally paused for breath, albeit it was notable there wasn’t a major sell-off in the metal. That suggests investors are keen to keep some safety elements in their portfolio. Healthcare and tobacco stocks were also in vogue, which is normally what you would expect on a day of worry, not when markets rebound.

B&M

Just when it looked as if all the bad news had come out of B&M, the value retailer has now thrown more items into the kitchen sink. Yet another downgrade to earnings guidance has kept the share price on its knees and left investors with a sour taste.

The company talked about early signs of recovery, yet it is plagued by unsold goods that are taking up valuable space. It is slashing prices to get rid of these items, which is a headwind for profit margins.

Heron Foods continues to limp along, and B&M is reviewing the business to find ways to better chime with customers.

Ultimately, B&M remains in a state of flux while it tries to rearrange the furniture and get itself in a better position to mount a proper comeback. Investors show little faith judging by ongoing share price weakness.

There are some bold decisions for B&M to consider, such as jettisoning Heron Foods and rightsizing its store estate to focus on fewer but better performing units. Yet it still needs to get the core day-to-day operations in a healthier position before it can think about the bigger picture.

The Works

The Works might feel like a retail proposition which belongs in the past, but its latest results suggest it remains relevant with shoppers.

Unlike much of the retail sector, The Works still generates most of its sales from its physical stores. The festive period looks to have been positive as people snapped up last-minute Christmas gifts on a budget – with the company serving up resilient like-for-like sales growth and improved margins.

Importantly, this has translated into a stronger balance sheet position which will reassure investors in what remains a competitive and embattled retail sector.

However, the online business is struggling and web-based sales have cratered thanks to issues with its third-party fulfilment partner.

The company says it is continuing to try and address these problems, but investors will want to see signs of tangible progress, rather than just earnest messages about delivering a fix, sooner rather than later.

Wickes

Wickes’ latest update was just the job for the home improvement retailer as it continues to rebuild its credibility with the market after a difficult start following its spin-off from Travis Perkins in 2021.

The company’s retail business reached a new record market share and a focus on more lucrative trade customers continues to pay off, and a return to like-for-like growth in its design and installation business in the second half will please investors.

The company’s balance sheet remains strong which gives the group the flexibility to invest in further expansion and management will be hoping the strong start to the year for the UK property market is sustained.

Wickes should benefit from an increase in transactions as people look to do up their homes to sell or spruce up newly acquired properties.