A swift bounce for the FTSE 100 and other markets has reversed much of yesterday’s caution, helped on its way by Netflix earnings.
Yet again this market is proving that geopolitical concerns have only a short-term impact on broader investor sentiment. Last week’s Ukrainian news saw a gap between major earnings, and now that US companies are back in focus the emphasis, and with it risk appetite, has shifted. Netflix has raised its sights, targeting a general expansion of services around the world. If it can add almost 600,000 subscribers in a normally quiet quarter, heaven knows what it can do in a busy one. Tesco’s rise yesterday has been wiped out by a 3% drop today, as euphoria over a new chief executive fades to be replaced with a sober realisation that any turnaround will be a long-term effort. Royal Mail continues to erode its post-flotation pop, but with the shares seemingly unable to arrest their decline the question will be how long the much-lauded ‘long term investors’ will stay? Especially given the weakness in the supposedly robust parcels unit.
Earnings today will satisfy investor appetite on all fronts, but it will be the tech sector that will receive most of the attention. Having beaten expectations for five quarters in a row, expectations are high for Apple, but there is hardly a time when expectations are not high for Apple. With the Dow Jones back above 17,000, the impression is of a market that is in no mood to go lower, and is gearing up for another move higher thanks to a positive set of US earnings. Ahead of the open we expect the Dow to start 28 points higher at 17,079.
Yet again this market is proving that geopolitical concerns have only a short-term impact on broader investor sentiment. Last week’s Ukrainian news saw a gap between major earnings, and now that US companies are back in focus the emphasis, and with it risk appetite, has shifted. Netflix has raised its sights, targeting a general expansion of services around the world. If it can add almost 600,000 subscribers in a normally quiet quarter, heaven knows what it can do in a busy one. Tesco’s rise yesterday has been wiped out by a 3% drop today, as euphoria over a new chief executive fades to be replaced with a sober realisation that any turnaround will be a long-term effort. Royal Mail continues to erode its post-flotation pop, but with the shares seemingly unable to arrest their decline the question will be how long the much-lauded ‘long term investors’ will stay? Especially given the weakness in the supposedly robust parcels unit.
Earnings today will satisfy investor appetite on all fronts, but it will be the tech sector that will receive most of the attention. Having beaten expectations for five quarters in a row, expectations are high for Apple, but there is hardly a time when expectations are not high for Apple. With the Dow Jones back above 17,000, the impression is of a market that is in no mood to go lower, and is gearing up for another move higher thanks to a positive set of US earnings. Ahead of the open we expect the Dow to start 28 points higher at 17,079.
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AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.