A soft start to the last day of the trading week sees the FTSE 100 struggle to hold onto parity in early trading.
Today the corporate data focus has shifted away from the US and on to the UK, with a number of companies updating the markets with their latest figures. Unfortunately the impressive performance of the US equity markets, where over 70% of companies have been able to beat expectations, does not look like it will be replicated here. One stock bucking the negative outlook trend is, somewhat surprisingly, Royal Bank of Scotland. In fact, the company has been so pleased with its self it has been unable to contain its excitement and posted the eye-catching first-quarter figures of a £1 billion pre-tax profit a week early. Although this is an encouraging sign, we are still some way off seeing the government being in a position to reduce its 81% holding in the Bank. In a considerably less optimistic press release, mining companies Anglo American and Lonmin have painted an altogether gloomier picture with a combination of poor commodity prices, difficult currency hedging headwinds and continued disruption at platinum mines contributing to both erring on the side of caution with their forward guidance. Adding to the corruption allegations it is currently facing in China, GlaxoSmithKline now looks to be dealing with similar issues in Syria. Vodafone’s figures, without the attractive Verizon dividend, were always going to be much less enticing to investors. Adding to the company's woes are the difficult markets in Spain and South Africa, and the changing regulatory environment in Europe that has benefited phone users at the cost of service providers.
Last night saw the S&P 500 set an all-time high, while at the same time both the Nasdaq and Wall Street wobbled. Now past the half way mark in the US reporting season assessments on its success are being made, and with over 70% of companies posting figures beating earnings per share expectations equity index traders can feel justifiably smug. Those calling for a correction on the earnings multiples of US companies being too high may still have a point, but companies are doing their best to post figures that will go some way to validating all that optimism. Ahead of the open we expect the Dow Jones to start 22 points lower at 17,061.
Today the corporate data focus has shifted away from the US and on to the UK, with a number of companies updating the markets with their latest figures. Unfortunately the impressive performance of the US equity markets, where over 70% of companies have been able to beat expectations, does not look like it will be replicated here. One stock bucking the negative outlook trend is, somewhat surprisingly, Royal Bank of Scotland. In fact, the company has been so pleased with its self it has been unable to contain its excitement and posted the eye-catching first-quarter figures of a £1 billion pre-tax profit a week early. Although this is an encouraging sign, we are still some way off seeing the government being in a position to reduce its 81% holding in the Bank. In a considerably less optimistic press release, mining companies Anglo American and Lonmin have painted an altogether gloomier picture with a combination of poor commodity prices, difficult currency hedging headwinds and continued disruption at platinum mines contributing to both erring on the side of caution with their forward guidance. Adding to the corruption allegations it is currently facing in China, GlaxoSmithKline now looks to be dealing with similar issues in Syria. Vodafone’s figures, without the attractive Verizon dividend, were always going to be much less enticing to investors. Adding to the company's woes are the difficult markets in Spain and South Africa, and the changing regulatory environment in Europe that has benefited phone users at the cost of service providers.
Last night saw the S&P 500 set an all-time high, while at the same time both the Nasdaq and Wall Street wobbled. Now past the half way mark in the US reporting season assessments on its success are being made, and with over 70% of companies posting figures beating earnings per share expectations equity index traders can feel justifiably smug. Those calling for a correction on the earnings multiples of US companies being too high may still have a point, but companies are doing their best to post figures that will go some way to validating all that optimism. Ahead of the open we expect the Dow Jones to start 22 points lower at 17,061.
Recommended Content
Editors’ Picks
GBP/USD stays weak near 1.2400 after UK Retail Sales data
GBP/USD stays vulnerable near 1.2400 early Friday, sitting at five-month troughs. The UK Retail Sales data came in mixed and added to the weakness in the pair. Risk-aversion on the Middle East escalation keeps the pair on the back foot.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.