CityIndex Team of Analysts
CityIndex
As was broadly expected, the FTSE bounced on the open this morning, following a record session in the US overnight. The Dow surged over 140 points, whilst the S&P and the Nasdaq tagged on 0.8% and 1% respectively, all hitting unchartered territory. The rally took place after the Democrats and the Republicans passed the funding bill to end the US government shut down, 72 hours after it started.
US earning season back under the spotlight
Whilst the US government shutdown was never expected to last any significant amount of time, the passing of the stop gap spending bill allowed investors to return their focus back to earning season, which is now well under way. Today we see earnings from Protector & Gamble, Verizone and Johnson & Johnson, with big names Ford and Caterpillar still to come later in the week.
EasyJet flies into top spot
Sticking with earnings, in UK corporate news, EasyJet flew into the top spot on the FTSE leader board. The low-cost carrier impressed with its results, jumping over 5% in early trading. Revenue increase at EasyJet comfortably hit double digits for the first quarter, up 14% to £1.14 billion. Meanwhile an industry indicator for revenue per seat increased a solid 6.6%, as easyJet continues to capitalise on its rival’s woes. The budget airline industry has been a tough place to be in recent quarters as evidenced by the demise of rivals Monarch and Air Berlin, however EasyJet shares have shot up 15% in the past 3 months as market conditions are set to improve.
Eurozone sentiment in focus
Over in Europe, sentiment indicators are could give the flagging euro a boost, with ZEW sentiment surveys due from Germany and the eurozone, in addition to eurozone consumer confidence later in the day. The EUR/USD is trading down 0.2% heading into the reading, with the recent rally looking exhausted, despite the IMF saying that it expects eurozone economic growth to be 0.3% higher than originally forecast, increasing 2.1% in 2018 and 2% in 2019. Sentiment is expected to be strong in the eurozone, a surprise on the upside could offer support to the EUR/USD although with the ECB monetary policy meeting in just two days, traders will remain cautious. Resistance is expected to be encountered at $1.2275 prior to $1.23. Meanwhile, immediate support for the pair can be seen at $1.22 with a stronger support in the region of $1.2165.
CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed
Recommended Content
Editors’ Picks
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up. The pair traded at 0.6518.
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 soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
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.