In mid-morning trading the FTSE 100 is up 27 points at 6294 as traders are taking time to digest China’s figures.
In London the equity market is eerily quiet. The numbers out overnight from China were good and bad at the same time, and the growth figures exceeded estimates but also confirmed the Chinese economy is cooling off. Mining stocks have been under severe pressure lately as traders were preparing themselves for soft figures from China, and now that their suspicions have been vindicated it is a non-event. ASOS has finally made a positive announcement; full-year profits were higher than expected, even though the end-of-year target was revised lower three times in the last seven months. ARM Holdings has given up its early gains. The chip designer reported a double-digit increase in revenue and the royalty stream came in higher than estimated. Despite a healthy jump in revenue per room with all regions of the company pulling their weight, shares in InterContinental Hotels slipped into the red. High-street bookie William Hill announced a 13% jump in first-half profits; the online gaming division is performing particularly well.
In the US, we are expecting the Dow Jones to open five points higher at 16,404. IBM which is now the third-largest Dow component is down 1.5% in pre-market trading, while Apple is extending its gains from last night’s stellar set of numbers.
In London the equity market is eerily quiet. The numbers out overnight from China were good and bad at the same time, and the growth figures exceeded estimates but also confirmed the Chinese economy is cooling off. Mining stocks have been under severe pressure lately as traders were preparing themselves for soft figures from China, and now that their suspicions have been vindicated it is a non-event. ASOS has finally made a positive announcement; full-year profits were higher than expected, even though the end-of-year target was revised lower three times in the last seven months. ARM Holdings has given up its early gains. The chip designer reported a double-digit increase in revenue and the royalty stream came in higher than estimated. Despite a healthy jump in revenue per room with all regions of the company pulling their weight, shares in InterContinental Hotels slipped into the red. High-street bookie William Hill announced a 13% jump in first-half profits; the online gaming division is performing particularly well.
In the US, we are expecting the Dow Jones to open five points higher at 16,404. IBM which is now the third-largest Dow component is down 1.5% in pre-market trading, while Apple is extending its gains from last night’s stellar set of numbers.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0750 following Monday's indecisive action
EUR/USD continues to fluctuate in a tight channel at around 1.0750 after posting small gains on Monday. Disappointing Factory Orders data from Germany limits the Euro's gains as investors keep a close eye on comments from central bankers.
GBP/USD retreats below 1.2550 as USD recovers
GBP/USD stays under modest bearish pressure and trades below 1.2550 in the European session on Tuesday. The cautious market stance helps the USD hold its ground and doesn't allow the pair to regain its traction. The Bank of England will announce policy decisions on Thursday.
Gold price turns red below $2,320 amid renewed US dollar demand
Gold trades in negative territory below $2,320 as the souring mood allows the USD to find demand on Tuesday. Nevertheless, the benchmark 10-year US Treasury bond yield stays below 4.5% and helps XAU/USD limit its losses.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is Securities and Exchange Commission (SEC) filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.