European equity markets are clawing back some of this week’s losses, and the FTSE has added 60 points by mid-morning.
In the early stages of Friday's trading day equity markets are behaving in a considerably calm and more calculating manner. Having closed below the 6200 level, not seen since June 2013, the FTSE has quickly rectified that situation. As attractive as many equity and index levels might be, it would be surprising to see the bulls become too enthusiastic. Opening up fresh long positions just before the weekend, especially when politicians like the FOMC’s James Bullard is throwing around such explosive comments, would appear unlikely.
A rally in the oil price in overnight Asian trading has seen the FTSE climbers list dominated by oil companies. However, with the oil markets supply massively outweighing demand this could just be a momentary blip. Rolls-Royce has posted a profits warning downgrading its outlook for the year, from flat to down 3.5% - 4%. The effect of the Russian sanctions was cited as the reason for postponed and cancelled orders. The troubling scenes in the eurozone sovereign debt and equity markets have not dented Europe’s drivers with September sales up 6.1%, the thirteenth month of increases in a row. The dampened enthusiasm for IPOs has seen Jimmy Choo start trading today at 140p, the lower end of its IPO price range.
Most of the major US corporates have continued the trend of beating expectations when posting their third-quarter figures, with the notable exceptions of JP Morgan and Google. As important as the US corporate third-quarter figures are, greater weighting will be given to the tone of Fed Chair Janet Yellen’s speech today. Markets will be expecting a dovish tone to reflect the intrepidation that markets have as the eurozone recovery continues to stall.
In the early stages of Friday's trading day equity markets are behaving in a considerably calm and more calculating manner. Having closed below the 6200 level, not seen since June 2013, the FTSE has quickly rectified that situation. As attractive as many equity and index levels might be, it would be surprising to see the bulls become too enthusiastic. Opening up fresh long positions just before the weekend, especially when politicians like the FOMC’s James Bullard is throwing around such explosive comments, would appear unlikely.
A rally in the oil price in overnight Asian trading has seen the FTSE climbers list dominated by oil companies. However, with the oil markets supply massively outweighing demand this could just be a momentary blip. Rolls-Royce has posted a profits warning downgrading its outlook for the year, from flat to down 3.5% - 4%. The effect of the Russian sanctions was cited as the reason for postponed and cancelled orders. The troubling scenes in the eurozone sovereign debt and equity markets have not dented Europe’s drivers with September sales up 6.1%, the thirteenth month of increases in a row. The dampened enthusiasm for IPOs has seen Jimmy Choo start trading today at 140p, the lower end of its IPO price range.
Most of the major US corporates have continued the trend of beating expectations when posting their third-quarter figures, with the notable exceptions of JP Morgan and Google. As important as the US corporate third-quarter figures are, greater weighting will be given to the tone of Fed Chair Janet Yellen’s speech today. Markets will be expecting a dovish tone to reflect the intrepidation that markets have as the eurozone recovery continues to stall.
Recommended Content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
USD/JPY: Japanese Yen advances to nearly three-week high against USD ahead of US NFP
The Japanese Yen continues to draw support from speculated government intervention. The post-FOMC USD selling turns out to be another factor weighing on the USD/JPY pair. Investors now look forward to the crucial US NFP report for a fresh directional impetus.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
High hopes rouse for TON coin with Pantera as its latest investor
Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.