Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
Main Trading Event Of The Day: USD Unemployment Claims @ 12.30 GMT
WHAT WE’RE WATCHING TODAY
Economic Data…U.S. Unemployment Claims, Mario Draghi Speaks
New jobless claims registered last week remained low at 304,000, near their pre-recession levels, following 302,000 posted in the previous week. Economists predict claims will climb to 315,000 in the week ended April 19 due in part to the Easter holidays where it is usual for claims to rise. Layoffs are reported to be trending lower and hiring is finally starting to gain momentum after being held back by severe weather earlier in the year, with recent jobless claims hitting their lowest levels in almost seven years.
ECB President Mario Draghi is also due to speak at a conference in Amsterdam today. He is expected to comment on the low inflation rate in the Eurozone. Market volatility is expected due to Draghi’s heavy handed approach on the euro.
Apple Earnings Drive Stocks
Apple impressed investors with a big earnings beat on Wednesday evening as well as another big stock buyback and a dividend hike. Shares jumped 7.8 percent in afterhours trading and are expected to boost sentiment on Wall Street. The stock shot up more than 8 percent in after-hours trading to $567.50. Apple Chief Executive, Tim Cook said the company chose to expand its stock-buyback program by $30 billion because it views its shares as undervalued. The company said it would boost the overall size of its capital return program to more than $130 billion by the end of 2015, up from its previous $100 billion plan. After more than a decade of remarkable earnings growth, the technology giant’s revenue and profit are flattening and the company is fighting the perception that its best days are behind it. Apple said net income was $10.22 billion in its fiscal second quarter ended March 29 versus $9.55 billion in the year-ago period. Revenue rose to $45.6 billion from $43.60 billion in the same period a year earlier. Apple’s earnings per share rose to $11.62 from $10.09, because the company’s stock repurchase program decreased the pool of total shares. Analysts, on average, estimated that Apple would post earnings of $10.18 per share on revenue of $43.53 billion.
European shares are also set for a higher open today on the back of Apple’s earnings. The FTSE is called up 18 points at 6,693, the German Dax is seen higher by 46 points at 9,590 and the French CAC is seen up 19 points at 4,470.
Gold Edges Up On Ukraine & U.S. Housing Data
Gold edged up today but held near a more than two-month low, dimming its appeal as an alternative investment. Bullion for immediate delivery rose as much as 0.3 percent to $1,287.08 an ounce, and traded at $1,287.06 at 11:40 a.m. Prices fell to $1,277.69 on April 22, the lowest level since Feb. 11. Gold has rallied 7.1 percent this year, rebounding from the worst annual drop in more than three decades as unrest in Ukraine, a rout in emerging markets and concern that the U.S. recovery may be losing momentum fueled demand. Investors are now waiting for the release of U.S. jobless claims and durable goods orders data for clues on the health of the world’s largest economy ahead of next week’s meeting of the Federal Reserve Open Market Committee on interest rates.
That sums up today’s highlights! You can find all the latest daily trading news and developments via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets!
