FTSE dragged lower by earnings impact
|The FTSE 100 has suffered at the hands of a strong pound and disappointing earnings environment. Meanwhile, with Apple pledging to make huge investments in the US economy, it comes as no surprise that US markets remain in favour
- FTSE trades lower, with earnings continuing to bite
- Cryptos on a comeback following recent decline
- Apple boosts US growth outlook
The FTSE 100 is spending yet another day in the red, within a week that has seen the headline UK bourse trading in a largely downbeat fashion. Alongside a strengthening pound, the FTSE has also been struggling to overcome a raft of disappointing earnings reports, with yesterday’s Burberry figures continuing to play a role while Associated British Foods led the index lower after a weakened outlook for its sugar department. The outperformance within their Primark business did little to appease investors, with weak EU sugar prices proving a drag on business going forward.
Cryptocurrencies appear to be back in the driving seat, with a resurgence in Bitcoin being joined by a whole plethora of Alt-Coins. Fears over the demise of the sector have been rife since their inception, and with back-to-back double digit declines this week, many believed we were seeing the beginning of the end for this latest bubble. However, we are seeing signs of a recovery from here, with a host of money moving back into the crypto space as traders look to take advantage of bargain basement prices.
Apple has led the way in a post-tax reform world, with their overnight announcement of a supposed $350 billion ‘contribution’ to the US economy. To company’s decision to invest $30 billion to expand its US operations highlights the growing confidence companies have that the tax reforms will help drive greater prosperity in the US. While investors would have hoped for the improved profit outlook to be spent on stock buy-backs or dividends, yet Apple’s decision to award each employee a $2,500 stock grant remains an injection of cash into the economy of sorts. With firms investing more in business and their employees, it is evident why traders are flocking to invest their money on the other
side of the Atlantic.
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