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.
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EUR/USD hovers near 1.0700 even as USD struggles ahead of data
EUR/USD has erased gains to trade flat near 1.0700 in the European session on Thursday. The pair comes under pressure even as the US Dollar struggles, in the aftermath of the Fed policy announcements and ahead of more US employment data.
GBP/USD turns south toward 1.2500, US data eyed
GBP/USD is consolidating the rebound above 1.2500 in European trading on Thursday. The pair struggles, despite the US Dollar weakness on dovish Fed signals. A mixed market mood caps the GBP/USD upside ahead of mid-tier US data.
Gold price pulls back as market sentiment improves
The Gold price is trading in the $2,310s on Thursday after retracing about three-tenths of a percent on reduced safe-haven demand. Market sentiment is overall positive as Asian stocks on balance closed higher and Oil prices hover at seven-week lows.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.