It might be a soft start for the FTSE down 32 points, but there is not the same undercurrent of panic seen in last week’s trading.
Equity traders will have plenty to contend with this week, as FTSE equities join in with their US counterparts in reporting quarterly figures. The frequently used excuse of 'currency headwinds' should be absent from UK corporate outlooks and the firmer commodity prices with the exception of the energy prices should help the mining sector heavy FTSE. Last week’s sovereign debt-triggered chaos looks to have been brought under control quickly as the Greek ten-year debt yield is back below 7.5% after last week threatening the 10% level. There is of course always a hurdle or two to clear and Tuesday's Chinese GDP figures along with Thursday’s eurozone & US manufacturing figures might well instigate a faller or two.
As further revelations come to light over the inner workings of Tesco, a greater belief that the management now have a firm handle on things has enabled the share price to stage a mild rally on Monday morning. The UK food retailer will, however, remain under close market scrutiny until the delayed quarterly figures are finally published on Friday. Fresh from the humiliation of being publicly dumped by its US suitor, AbbVie, it transpires that Shire’s CFO James Bowling has himself been wooed by Severn Trent’s advances. Greene King has moved to acquire Spirit Pub with an improved offer valuing the company at £725 million – a sufficient amount to receive the backing of the board.
Today will see IBM, Apple and Halliburton continue the US reporting season. To date, 80% of the US corporates have managed to beat market expectations. This goes some way to endorsing the high profit multiples that companies have, while at the same time asking how institutional analysts have so frequently undershot with their expectations.
Ahead of the open we expect the Dow Jones to start 39 points higher at 16,419.
Equity traders will have plenty to contend with this week, as FTSE equities join in with their US counterparts in reporting quarterly figures. The frequently used excuse of 'currency headwinds' should be absent from UK corporate outlooks and the firmer commodity prices with the exception of the energy prices should help the mining sector heavy FTSE. Last week’s sovereign debt-triggered chaos looks to have been brought under control quickly as the Greek ten-year debt yield is back below 7.5% after last week threatening the 10% level. There is of course always a hurdle or two to clear and Tuesday's Chinese GDP figures along with Thursday’s eurozone & US manufacturing figures might well instigate a faller or two.
As further revelations come to light over the inner workings of Tesco, a greater belief that the management now have a firm handle on things has enabled the share price to stage a mild rally on Monday morning. The UK food retailer will, however, remain under close market scrutiny until the delayed quarterly figures are finally published on Friday. Fresh from the humiliation of being publicly dumped by its US suitor, AbbVie, it transpires that Shire’s CFO James Bowling has himself been wooed by Severn Trent’s advances. Greene King has moved to acquire Spirit Pub with an improved offer valuing the company at £725 million – a sufficient amount to receive the backing of the board.
Today will see IBM, Apple and Halliburton continue the US reporting season. To date, 80% of the US corporates have managed to beat market expectations. This goes some way to endorsing the high profit multiples that companies have, while at the same time asking how institutional analysts have so frequently undershot with their expectations.
Ahead of the open we expect the Dow Jones to start 39 points higher at 16,419.
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
GBP/USD steadies near 1.2450, awaits mid-tier US data
GBP/USD is keeping its range at around 1.2450 in European trading on Wednesday. A broadly muted US Dollar combined with a risk-on market mood lend support to the pair, as traders await the mid-tier US Durable Goods data for further trading directives.
Gold: Defending $2,318 support is critical for XAU/USD
Gold price is nursing losses while holding above $2,300 early Wednesday, stalling its two-day decline, as traders look forward to the mid-tier US economic data for fresh cues on the US Federal Reserve interest rates outlook.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.