Market Comments

The Greek elections might be over but markets remain preoccupied with what the new government will do next, conscious that a stern test of the eurozone's commitment to stay together could be just round the corner. So far in the morning session the FTSE has shed 20 points as the rally begins to stall.

Brussels will be hosting another European meeting today and this time it is the turn of the Economic and Financial Affairs Council. The close proximity of EU finance ministers especially after the recent Greek elections could well lead to a number of interesting quotes throughout the day. UK preliminary quarterly GDP figures have come in worse than expected and this afternoon it will be the turn of US durable goods orders, and consumer confidence figures to improve sentiment. Following a number of weeks charging higher, gold is struggling to hang onto its gains. Both US Light Crude and Brent Crude continue to float mid-range in the $40’s but are looking more likely to continue drifting lower than mount a serious recovery.

easyJet shares took off as soon as the markets opened following the announcement that first-half losses in the quieter winter months were less than expected and likely to be half of the previous year's. An improvement in business travel numbers and cost efficient fuel prices have combined to send the shares higher. Having already lost its CFO to ARM Holdings the airline will be hoping this further success will not add to the attractions of CEO Carolyn McCall. Sticking with the airlines, Willie Walsh looks to have got his way as the Aer Lingus board has now recommended IAG’s third offer worth €2.55 a share for the Irish airline. Peppa Pig continues to bring home the bacon for Entertainment One following its 100% year-on-year growth which has helped return almost $1 billion in global retail sales. This has helped drive the share price up by 2.67% in the morning session.

It's a packed day of US corporate reports today with Caterpillar, Pfizer, Apple, Yahoo, AT&T and Proctor & Gamble all posting quarterly figures. Last night saw Microsoft join an illustrious list of US companies that have missed EPS expectations, putting firm downward pressure on the shares. The markets have come to expect 75% of companies to beat projections, but this quarter is beginning to look like the exception to the rule.