Tag Archives: European Shares

Facebook Earnings: Favourable Performance Expected To Continue

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: NZD Official Cash Rate @ 17.00 GMT

WHAT WE’RE WATCHING TODAY

Facebook Earnings: Favourable Performance Expected To Continue

Facebook’s Q2 2014 results are due today with expectations high considering the company’s performance in recent quarters. Analysts expect a significant year over year jump in ad revenues driven by higher ad pricing and the number of ad impressions. Although Facebook’s user base growth has slowed down, its revenue growth has accelerated on the back of innovation in ad format and delivery. Mobile will remain the focus, with the the mobile platform’s revenue contribution nudging close to 65%. Market watchers will be looking at how the company performs in international markets which is where the most of its incremental growth will come from in the future. Facebook saw 82% growth in its ad revenue during the first quarter of 2014, which was primarily driven by a 118% increase in its average ad pricing. This eclipsed Q4 2013 ad pricing growth of 92%, which is encouraging considering tougher year-over-year comparison. The growing proportion of feed-based ads was the primary reason behind this success.

In the coming quarters, Facebook is likely to focus on improving its monetisation in international markets. The push comes from the fact that despite harbouring most of the world’s population, Asia, Africa and South America haven’t contributed much to Facebook’s revenues suggesting that Facebook has a tremendous opportunity to increase monetisation in international markets.

Europe Shares Set For Lower Open

European shares are geared up for a lower open today after previous gains amid ongoing geopolitical concerns in Gaza and Ukraine. The FTSE is called down 15 points at 6,780 while the German Dax is seen lower by 22 points at 9,712. The European Union failed to announce any tough sanctions against Russia at a meeting on Tuesday. The U.S. was hoping for stricter penalties to be placed on Russia to push the country into cooperating with an international investigation into the downed Malaysian jet and calming the separatists in the eastern part of Ukraine. EU ministers drafted possible sanctions that could stem access to financial services and technology but they failed to put in place broader penalties.

Asian stock markets were mixed today with investors opting to book profits. U.S. stocks rose on Tuesday, lifting the S&P 500 to a record as Wall Street focused on quarterly earnings and fresh data releases.

Apple Beats Expectations On Strong IPhone Sales

Apple reported its second straight quarter of double-digit percentage growth in iPhone sales yesterday as it heads into a major update of its flagship product. The company sold 35.2 million iPhones in the quarter ended June 28, up 12.7% from the 31.2 million units in the year-ago period. The latest figure was just short of analysts’ projections for sales of 35.9 million iPhones. Strong iPhone sales were driven by demand from Brazil, Russia, India, and China with sales in those countries rising 55%, including a 48% increase in China alone. In the past few years, the June quarter has been the slowest for Apple as the company gears up with new products ahead of the year-end. Apple is counting on an expected new product push of larger iPhones and smart-watches before year-end to revitalise earnings that have flattened after more than a decade of remarkable growth, raising concerns that Apple is losing its innovative touch. Apple’s third quarter profit was $7.75 billion, up 12.3% from $6.9 billion in the year-ago period while earnings per share rose to $1.28 from $1.07. Revenue rose 6% to $37.43 billion from $35.32 billion in the same period a year earlier.

That sums up today’s highlights! Remember to keep in touch via our Facebook, Twitter, Google+ & LinkedIn pages for all the latest news on the days trading activities. We hope you have a profitable day on the markets.

Stocks Slip After Malaysian Plane Shot Down

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

MainTrading Event Of The Day: USD Prelim UoM Consumer Sentiment @ 13.55 GMT

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Asian Stocks Slip After Malaysian Plane Shot Down

Asian stocks fell from near a six-year high, after one of its planes was shot down in Ukraine yesterday. The MSCI Asia Pacific Index slipped 0.5 percent by 12:51 p.m. in Tokyo, falling for the first time this week. Malaysian Airline shares tumbled 8.9 percent. Standard & Poor’s 500 Index futures fell 0.1 percent after the U.S. gauge’s biggest drop in three months. Ten-year bond yields in Australia and Japan traded near the lowest in more than a year, while a gauge of credit-default swap prices jumped five basis points. Oil in New York added 0.5 percent. With geopolitical risk in Ukraine and the Middle East, people are concerned the stock market won’t be a safe place to invest and have turned to bonds. European shares are also set for a lower open today with the FTSE called down 25 points at 6,713 and the German Dax by 57 points at 9,696.

Meanwhile, oil prices rose after Israeli Prime Minister Benjamin Netanyahu announced the start of a ground campaign in Gaza. The decision came as a surprise as officials from the Palestinian authority and Israel were believed to be progressing in talks in Egypt aimed at a lasting cease-fire.

Gold Climbs As Plane Crashes

Gold rallied yesterday as a Malaysia Airlines crash in Ukraine near the Russian border revived haven demand. Gold for August delivery rose $17.10, or 1.3%, to settle at $1,316.90 an ounce. Traders also took into consideration a weaker than expected report on U.S. housing starts, although that was offset by a stronger-than-anticipated figure for weekly jobless claims. A day earlier, gold put an end to a three-day losing streak by moving fractionally higher, as traders continued to digest Federal Reserve Chairwoman Janet Yellen’s mostly dovish testimony. Elsewhere in metals trading, October platinum rose by $18.00, or 1.2%, to $1,503.70 an ounce. Bloomberg reported platinum prices were trading at a 13-year high after sanctions imposed on Russia, which is a major producer of the industrial metal.

Google Earnings Miss Expectations

Google reported earnings that missed expectations while revenue topped Wall Street estimates on yesterday. Shares rallied in extended hours trading. The Internet giant reported earnings of $6.08 per share, excluding one-time items, on revenue of $15.96 billion. Analysts had expected the company to report earnings excluding items of $6.24 a share on nearly $15.62 billion in revenue. Revenue for Google increased 22 percent in the second quarter as it saw strong demand for ads on its websites. Analysts had been expecting the Internet giant to discuss falling online ad prices, which remain Google’s biggest source of revenue. Google will account for more than a third of global digital ad spending this year according to Dow Jones.

That sums up today’s highlights! Remember to keep an eye on all the latest economic developments of the day via our Facebook, Twitter, LinkedIn and Google+ pages. We hope you have a profitable day on the markets.

U.S. Unemployment Claims: Increase Expected

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Europe Shares Seen Lower Amid Russia Sanctions

European shares are on track for a lower open today as tensions in Ukraine are back into focus. The FTSE is called down 22 points at 6,762 while the German Dax is seen lower by 13 points at 9,846. The U.S. and the European Union announced a fresh round of sanctions against Russia yesterday following the annexation of Crimea back in April and ongoing tensions in the rest of Ukraine. Russian President Vladimir Putin is reported to have said that relations between the U.S. and Russia are in danger of reaching a dead end and could damage U.S. business interests in his country. On Wall Street yesterday, the Dow index posted its 15th record-high close of the year thanks to a rally in tech shares after Intel posted strong third-quarter guidance.

Economic data also helped to boost sentiment. The Federal Reserve’s Beige Book found the economy expanding at a modest to moderate pace with consumer spending up in all of the Fed’s districts. Another report had U.S. factory output increasing for a fifth month in June. U.S. Federal Reserve Chair Janet Yellen also concluded a second day of congressional testimony, where she faced a multitude of questions from lawmakers about legislation to make the Fed more accountable.

U.S. Unemployment Claims: Increase Expected

The last few months have seen moderately higher increases in non-farm payrolls. On the plus side, there’s been a marked increase in the monthly change, with the net gain running above the 200,000 mark for five straight months through June, the first run of 200,000 plus increases for five consecutive months in nearly 15 years.

Whether the latest run of strength is a genuine sign that the economy’s finally poised to create new jobs on a sustained basis or just another temporary bout of short-term noise that will again give way to the modest increases of recent history, remains to be seen. Watch for today’s weekly numbers on new filings for unemployment benefits. Last week’s report showed that claims fell to 304,000 for the week to July 5 - close to a seven year low. But the data was for the July 4 holiday week and so the latest numbers may be misleading. The consensus prediction is for a slight rise to 310,000. If the prediction holds, it will provide fresh support for thinking that modest improvement in the labour market is still in force.

U.S. Unemployment Claims today @ 12.30 GMT

Tech Stocks: Google Set To Be A Trillion Dollar Company

Google has the potential to hit a trillion-dollar market cap in the next 10 years, according to one technology investing leader who expects the search engine giant to join Facebook in gobbling up smaller companies and continuing to grow rapidly. The rise of the first trillion-dollar companies was one of a handful of big ideas entertained during a recent tech-focused panel where it was noted that companies that can make it easier to make videos will do well. Big things are also predicted for digital currencies, although not necessarily bitcoin, which is the most prominent name now but has faced price volatility, theft and scandal over the past year. Other providers will come along with at least half a dozen multi-billion dollar digital currency companies expected to emerge.

That sums up today’s highlights! Remember to keep in touch for all the latest tradable events of the day. Find us on Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Dollar Holds Gains In Advance Of Yellen Testimony

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 Fed Chair Yellen Testifies @ 14.00 GMT

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Dollar Holds Gains In Advance Of Yellen Testimony

The dollar remained higher against the yen following its biggest one-day advance in a week as Federal Reserve Chair Janet Yellen is due to testify before U.S. lawmakers. A gauge of the U.S. currency advanced surrounding bets that Yellen will provide additional clues as to when the central bank will raise interest rates for the first time since 2006. The yen was little changed as the Bank of Japan maintained record monetary stimulus.

Yellen is likely to emphasise the need to keep interest rates near zero for a considerable period even after a report this month showed unemployment fell to an almost six-year low. She may also say that while the jobless rate has fallen faster than the Fed expected, the presence of part-time and discouraged workers and long-term unemployed represents a reservoir of potential supply and accounts for wages not growing rapidly at all, which will probably justify the message that the Federal Reserve is in no rush to begin to raise interest rates. Regarding the inflation outlook, while unemployment fell to 6.1 percent last month and inflation has risen closer to the Fed’s 2 percent target, analysts believe there is still too much uncertainty for her to change the tone materially.

The dollar rose 0.1 percent to 101.59 yen at 1:52 p.m. after strengthening 0.2 percent yesterday, the most since July 3. The U.S. currency was unchanged at $1.3619 per euro. The yen traded at 138.37 per euro from 138.28 yesterday. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its major counterparts, climbed less than 0.1 percent to 1,007.13.

Gold Retains Sharp Losses Trading Close To 4-Week Low

Gold was trading near its lowest level in almost four weeks on Tuesday, as sharp overnight losses triggered by profit-taking and stronger global equities dented the metal’s safe-haven appeal. Spot gold was little changed at $1,306.75 an ounce after sliding more than 2 percent on Monday - its biggest daily drop since December. Gold touched a low of $1,302.90 in the previous session, its weakest since June 19. Gold had climbed to a near four-month high of $1,345 last week as financial troubles at Portugal’s top bank rekindled fears of another euro zone banking crisis, although those fears have now subsided. Investors will be monitoring Federal Reserve Chair Janet Yellen’s testimony in a U.S. Senate committee later today for signs of when the U.S. central bank would begin increasing interest rates. They will also be watching developments in the Middle East and Ukraine for any escalation in violence that would create fresh safe-haven demand for gold amid reports that Moscow is once more building up its troops on its joint Ukraine border.

European Shares Set For Pullback; Yellen In Focus

European shares are on track for a slightly lower open today, pulling back slightly from yesterday’s gains as investors remain cautious before earnings season and Federal Reserve Chair Janet Yellen’s testimony today. The FTSE is called down 5 points at 6,741 while the German Dax is seen lower by 8 points at 9,775. Stocks in Europe saw healthy gains in the previous session as earnings from U.S. bank Citigroup and merger activity surrounding pharma firm Shire sent bourses higher. However, investors look set to hold off before any more buying with a number of data due on Tuesday. June inflation data is out for the U.K., while Germany also receives its widely watched ZEW economic index. Central bank policy makers are also set for meetings today. In addition to Yellen’s two-day testimony, Bank of England Governor Mark Carney is due in front of U.K. lawmakers for a financial stability discussion. Both appearances will be an opportunity for investors to gauge the future direction of monetary policy in each country with both expected to start raising benchmark interest rates in the not-too-distant future. Elsewhere, U.K. Prime Minister David Cameron is expected to announce wide-ranging changes to the lineup of its decision-making body called the Cabinet. Foreign Secretary William Hague is currently the biggest name set to be given a new role in the reshuffle.

That sums up today’s highlights! It’s a busy day on the financial markets so remember to keep posted via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets.

Dollar Holds Steady After Rally

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: GBP Manufacturing Production @ 08.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Holds Steady After Rally

The dollar held steady versus a basket of major currencies today having retreated from the previous day’s two - week high. The dollar index was at 80.233, off a 1-1/2-week peak at 80.359 set on Monday but managed to hold on to most of the gains made following strong payrolls data last Thursday. The greenback’s lacklustre performance came as U.S. Treasury yields slipped from recent highs after Wall Street turned cautious ahead of the second-quarter earnings season starting this week. This helped support the euro, which held steady at $1.3605, after a low of $1.3576 on Monday after an unexpectedly big fall in German industrial output unsettled the common European currency. The disappointing data added to increasing signs of a weaker second quarter in Europe’s largest economy and fanned expectations the European Central Bank may have to loosen monetary policy further in the months ahead. The dollar eased 0.1 percent to about 101.82 yen, nudging away from a two-week high of 102.27 yen set last Thursday. Meanwhile, the Fed is thought likely to continue with its tapering of asset purchases and to start raising interest rates sometime next year.

Europe Shares Seen Slightly Higher With Upcoming Data & Earnings

European shares are set to open higher today on Tuesday with a series of data due for the euro zone and as investors contemplate the beginning of corporate earnings season. The FTSE is up 2 points at 6,82 and the German Dax 4 points higher at 9,910. Germany is set to receive foreign trade data which could set the tone for the day’s trading session. European stocks closed lower on Monday following weak industrial production data for Germany, which stoked fears of a slowdown in Europe’s largest economy. Investors have also been anticipating the upcoming earnings season with Alcoa - the traditional signal for the start of the season - due to release results in the U.S. on Tuesday evening. Traders are looking for profit growth from corporates to give them a reason to keep buying stocks and push benchmark indexes higher. Firms listed in the pan-European Stoxx 600 are predicted to grow 17.7 percent from the second quarter in 2013 with nine of the index’s 10 sectors set for an improvement.

Twitter Appoints Global Media Chief

According to reports, Twitter has appointed Katie Stanton its new media chief, positioning the former Google executive at the heart of its vital relationships with Hollywood and the global media industry. Twitter has reported lacklustre user and usage growth for the last couple of quarters, and its stock price has nearly halved in the last six months. Stanton will oversee Twitter’s continuing efforts to court TV networks, Hollywood studios and other media companies around the world.

That sums up today’s highlights! Stay in touch with us via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest trading news! We hope you have a profitable day on the markets.

Investors Await U.S. Payroll Data

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: US Non-Farm Employment Change (NFP) @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Investors Await U.S. Payroll Data

The U.S. non-farm payrolls data is due later today and is widely expected to show the biggest gain in hiring since last November of more than 200,000 new jobs. Analysts are looking to see if the increase in hiring is broad-based and whether wages are continuing to rise. The pace of hiring has been up and down since last fall and presently, job creation appears to be shifting higher. A recent poll reveals a net increase of 215,000 in April, which would mark the biggest bump since a 274,000 gain in November. What may not be clear straight away is how much of the increase is the result of warmer weather. A harsh winter disrupted many industries such as construction and manufacturing and some companies either cut back production or put off new hires. So far this year the economy has added an average of 178,000 jobs a month, below the 2013 level of 194,000. The bullish case would be aided by a broad increase in hiring across a range of industries. More limited gains will be regarded as a negative sign.

Revised employment figures for March and February are regarded just as important as new job creation. Throughout most of the recovery, the government’s preliminary estimates of new jobs have proven too conservative. In most months the number of jobs added to the economy has been revised sharply higher, based on more complete data. From September through February, for example, the employment numbers have been revised upward by an average of 26,000 a month. If this trend continues, job creation early in 2014 will look a lot better than it initially did. A steady pickup in hiring over the past three years has dragged the unemployment rate down to 6.7% from 9%. And economists predict the unemployment rate will drop another notch to 6.6% in April, matching a post-recession low. However, some 3.7 million people are still counted as long-term unemployed. Until the ranks of the long-term unemployed are vastly reduced, companies are unlikely to boost wages and the economy will continue to struggle to achieve its historical growth rate of 3.3% a year. Growth has averaged about 2% annually since the U.S. exited the last recession.

U.S. NFP today @ 12.30 GMT

Gold In Holding Pattern Ahead Of Jobs Report; Stocks Mixed

Gold prices inched higher Friday, as investors hesitated to commit to either direction ahead of the highly anticipated U.S. jobs report later in the day. Gold for June delivery was up at $1,283.50 an ounce. A day earlier, gold broke below levels not seen since early last week, as a rise in consumer spending and income threw a wet blanket on demand ahead of the jobs number. While the employment data is arguably the most important economic news of the month, troubles globally will continue to shape gold trading. With the Ukraine situation likely to get worse before it gets any better, gold and other safe-haven assets will likely at least see selling interest limited due to some extent.

U.S. stocks fluctuated on Thursday, a day after the Dow Jones Industrial Average rose to a record finish as investors took a cautious approach before the April nonfarm payrolls report. European shares, meanwhile are set for mixed open in advance of the US jobs data. The U.K.’s FTSE index is expected to open level at 6808, with Germany’s DAX seen 19 points higher at 9624 and France’s CAC called 7 points lower at 4480.

Pfizer Raises Offer For Astrazeneca To GBP 50 Per Share

U.S. drugmaker Pfizer said on Friday it had raised its offer for AstraZeneca to GBP 50 ($84.47) a share, adding that the British drugmaker was reviewing the proposal. AstraZeneca earlier rebuffed a proposal valuing it at just under $100 billion, or GBP 46.61 per share. Buying AstraZeneca would give Pfizer a lower tax rate and a portfolio of experimental cancer drugs. Stockholders would get 15.98 pounds in cash and 1.845 shares of the combined company for each share in AstraZeneca. The new bid is 39 percent above the closing price Jan. 3, before AstraZeneca made its initial offer. AstraZeneca rose 3.2 percent to close at 48.15 pounds a share in London, giving it a market value of 60.8 billion pounds. Pfizer fell 0.4 percent to $31.15.

That sums up today’s highlights! Keep posted on all the day’s important events via our Facebook, Twitter, Google+ and LinkedIn pages. We hope you have a profitable day on the markets!

Jobless Claims Likely To Rise

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

Jobless Claims Likely To Rise

Data showing the number of Americans filing for first-time unemployment benefits is likely to show a slight gain in the latest weekly data. Forecasts reveal that weekly initial claims for regular state unemployment-insurance benefits will rise to 315,000 in the week that ended April 12, which is slightly up on 300,000 for the prior week. Some seasonal volatility may have accounted for last week’s drop in jobless claims to 300k which was the lowest level since May 2007, although layoffs are trending lower and hiring is gaining some momentum after being held back by the severe weather. The U.S. Labor Department will release the claims data today at 12.30 GMT.

European Shares Mixed, Dollar Falls As Yellen Pledges to Support Economy

European shares are set for a mixed open today, failing to continue a rally on Wall Street after Federal Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keep interest rates low. The FTSE is called up 1 point at 6,585, the German Dax is seen off by 8 points at 9,310 and the French CAC is seen down 3 points at 4,403. European bourses could see thin volumes today ahead of the Easter holiday weekend when many indexes are closed for a four-day weekend. In the U.S. stocks climbed after U.S. industrial production rose more than projected and Yellen reiterated that the central bank would keep up its backing of the recovery. Wall Street saw a strong close on Wednesday but those gains failed to translate to the rest of the globe. Asian stocks turned mixed following gains in this morning’s session as investors booked profits on the previous day’s rally. Investors in Europe will be monitoring events in Ukraine.

The U.S. dollar, meanwhile, fell against most of its Group of 10 peers. The dollar fell 0.2 percent to $1.3839 per euro and slid 0.2 percent to 102.03 yen, after rising 0.7 percent in the previous four days. The Japanese currency fetched 141.20 per euro from 141.24 yesterday. Financial markets in the U.S., U.K., Germany, Hong Kong, Singapore, Australia and New Zealand are among those that will be closed for a holiday tomorrow.

Google Misses Revenue Target As Trends Move Toward Mobile Advertising

Google Inc’s first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, highlighting the challenges Internet companies face as the world shifts toward mobile devices. Shares of Google were down 3 percent to $539.80 in afterhours trading on Wednesday, after initially sliding roughly 6 percent on the news. The number of “paid clicks” by consumers on Google’s ads increased by 26 percent in the first quarter, disappointing some analysts who had hoped for stronger volume growth. The average “cost per click” declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business. The world’s largest search engine, along with Facebook Inc and Twitter Inc, which are due to report financial results in coming weeks, are revamping their products and advertising business to account for smartphones.

That sums up today’s highlights! Remember that you can keep up-to-date with all the trading news and events for the day via our Facebook, Twitter, Google+ and LinkedIn pages.

We hope you have a profitable day on the markets.