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Canada Dollar Climbs On Sales; Facebook Earnings Above Expectations

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: U.S. Unemployment Claims @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Gold Falls Below $1,300 As Equities Gain

Gold broke below the key psychological level of $1,300 an ounce today as safe-haven demand for the metal eased due to rising Asian equities and strong Chinese manufacturing data. Physical demand in the region, however, increased slightly on the lower prices, with premiums in the biggest bullion consumer China edging up on buying interest. Spot gold fell 0.7 percent to $1,295.00 an ounce after dipping 0.2 percent in the previous session. U.S. gold slid about $9 to $1,295.50. Asian stock markets edged higher on Thursday as China’s factory activity expanded at its fastest pace in 18 months in July, bolstering hopes for recovery in the world’s second-biggest economy. Gold had recently seen support build around the $1,300 level on deepening violence in the Middle East and Ukraine that burnished its safe-haven appeal. Bullion could still see some safe-haven bids as Gaza fighting continues. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6 tonnes to 805.44 tonnes on Wednesday - increasing for a second straight day.

Canadian Dollar Climbs On Sales

The Canadian dollar touched the highest level in almost a week after a report showed the nation’s retail sales rose for a second month. The May sales figures followed a report last week that showed consumer prices climbed the fastest in more than two years in June. The dollar strengthened as much as 0.3 percent to C$1.0711 per U.S. dollar, the strongest level since July 18, before trading at C$1.0728 at 5 p.m. in Toronto, up 0.1 percent. One Canadian dollar buys 93.21 U.S. cents. Retail sales increased 0.7 percent to C$42 billion ($39.1 billion) as automobile purchases rose to a record according to Statistics Canada. Economists forecast retail sales would increase 0.6 percent. They gained 1.3 percent the previous month, more than initially reported, Statistics Canada data showed.

Facebook Profit, Sales Above Expectations

Facebook posted a second-quarter profit yesterday that more than doubled while extracting more mobile-advertising dollars from its users. Revenue increased 61% as advertisers continued to pour money into the social network. Mobile-advertising accounted for 62% of advertising revenue in the quarter, up from 59% in the first quarter and 30% a year ago. Facebook is gaining ground on Google in the mobile advertising market, expecting to command 18.4% of mobile-ad dollars this year, up from 9% in 2012. Google’s share is expected to slip to 40% from 50% in that two-year time period. Facebook reported net income of $791 million, or 30 cents a share, up from $333 million, or 13 cents, a year earlier. Revenue rose to $2.91 billion from $1.81 billion. Analysts had projected earnings of 32 cents a share and revenue of $2.81 billion.

That sums up today’s highlights but remember you can check our Facebook, Twitter, Google+ and LinkedIn pages for regular trading news throughout the day. We hope you have a profitable day on the markets.

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.

Gold Declines For Second Day In Advance of Fed Policy Meeting

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 CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Gold Declines For Second Day In Advance Of Fed Policy Meeting

Gold declined for a second day, trimming a monthly rise, on speculation that the Federal Reserve will further reduce U.S. monetary stimulus as it starts a two-day policy meeting today. Bullion for immediate delivery fell as much as 0.2 percent to $1,293.68 an ounce, trading at $1,295.70. Gold has advanced 7.8 percent this year in part as the tension in Ukraine spurred haven demand. With further sanctions for Russia looking certain, traders are likely to continue seeking safety in gold in the near term and if gold continues to rally, April highs at $1,331 will be the key level to look out for this week.

Euro Resilient Ahead Of Inflation Test

The euro traded at multi-week highs against the yen early today and held firm against the dollar following a surprisingly strong performance overnight as expectations for additional stimulus from the European Central Bank waned. The Euro reached a three-week peak of 142.18 yen, before slipping a touch to 141.97 yen. ECB President Mario Draghi told German lawmakers the central bank was still a long way off from implementing a bond-buying program even in the face of persistently low inflation. Still, traders said any downside surprise in the inflation numbers will weigh on the euro, especially since the market is positioning for a pick up in price pressure. German inflation figures are due later on Tuesday, ahead of the euro zone number on Wednesday. The euro was a touch firmer on the dollar at $1.3852 after recoiling from a two-week high of $1.3880, helping the dollar index recover to 79.696 from a two-week low of 79.548.

Wall Street Divided Over Twitter’s Prospects

Not so long ago, Twitter vowed not to end up like Facebook. As it prepared to debut, the last thing the company wanted was a repeat of Facebook’s rocky IPO and subsequent sell-off. Now, ironically, Twitter’s inability to replicate Facebook’s success in mobile and online may be what is holding it back. Wall Street remains divided over Twitter as the company prepares to unveil its second set of quarterly numbers. Eleven of 31 investment analysts polled by Thomson Reuters rate it a “sell,” outnumbering the seven who deem it a “buy.” The rest have a hold rating or its equivalent. That’s a stark contrast with Facebook and Google, neither of which has a single sell rating to their name. A strong quarterly showing from Facebook last week reflected an ramped-up online and mobile advertising market that’s likely to have given Twitter a boost. Longer-term, investors remain divided over whether Twitter can ever be as mainstream as Facebook. Yet $26 billion, the company still trades at 37 times sales, against 19 for Facebook, which boasts almost six times as many users as Twitter. Indeed, bullish analysts argue that the company is on the verge of realising its larger potential. Five months after its debut, Twitter stock remains above $40, versus its $26 offering price. Twitter has always seemed better placed to make money off of its smartphone user base. Although rivals Google and Facebook dominate mobile advertising, Twitter’s ad machine may get a jump-start once it places targeted ads in apps, tailored for users and their interests, which will extend its ad reach far beyond its 241 million users. Many believe that Twitter is best-placed to grab a significant slice of huge TV ad budgets because of its growing presence as the “second screen” that TV audiences turn to online, to catch up on their favorite shows. Analysts expect Twitter to have lost almost $159 million, or about 3 cents a share, on revenue of $241.47 million in the January-March quarter, according to Thomson Reuters.

That sums up today’s highlights! Keep in touch with the investment team here at Banc De Binary via Facebook, Twitter, Google+ and LinkedIn for all the latest market news. We hope you have a profitable day on the markets.

Lackluster U.S. Home Sales For March

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 Existing Home Sales @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Lackluster U.S. Existing Home Sales Expected For March

Monthly sales data due today is expected to reveal lackluster rates in March as existing home sales likely fell by 1.0% to a 4.57 million unit rate. Pending home sales have remained weak, with a 0.8% decline in February after a 0.2% decline in January, suggesting limited momentum for completed sales. Total housing inventory was up in February, although the number of homes for sale was still low, indicating that constraints on the supply side are also likely to continue to hold back the sales pace. Analysts are, however, expecting a sharp spring rebound with some strengthening in home sales as an increase in projects and purchases delayed by bad weather proceed.

Is The Long Bull Market Set For A Summer Correction?

As the markets head towards the summer, analysts are becoming increasingly concerned that the long bull market in stocks is set for a correction. The S&P is now nearly 1 percent higher for the year, after rising around 30 percent last year, but it is still down over 1 percent from the all-time high it reached in early April. The Dow Jones Industrial Average is off around 1 percent this year, after climbing over 22 percent last year. Market watchers point out that the market could react to any number of factors, such as an escalation of tensions in Ukraine, deleveraging in China or even if the Federal Reserve’s moves to taper its asset purchases prove to be too fast. A correction could be as much as 8 percent over a four to six week period. Earlier this month we experienced a correction in social media stocks with high-flying momentum names in Internet and social media sectors sold off sharply. The Nasdaq index dropped as much as 9.7 percent from its March high, flirting with the official correction level of 10 percent, before retracing some losses. The index is still down nearly 4 percent from its early April high. Many U.S. listed technology stocks entered a bear market, experiencing a loss of at least 20 percent, with more funds flowing into stocks considered defensive or lower risk. If conditions deteriorate, analysts expect the Fed may hold off on tapering which would boost prices again, while noting the correlation between the Fed’s moves to increase its balance sheet by buying assets and gains in stocks is around 90 percent.

Apple Among Top Tech Market-Value Losers As Facebook Posts Gains

The technology selloff has seen off large chunks of value, highlighted by big market cap drops in the sector’s high-fliers led by Apple and Amazon. Apple has shed about $28 billion in market cap since the beginning of the year, a 6% drop as Twitter’s market value has fallen 26%, as its market capitalisation fell by $9 billion. Other big name technology stocks have seen substantial cuts in market value: LinkedIn fell by nearly $5 billion, or a loss of 18% while Yahoo dropped by $4.5 billion. A notable exception in the downward trend is Facebook which has seen its market value grow by nearly $15 billion, or 11%, since the beginning of the year. Investors appear to be turning to more mature tech powerhouses amid the uncertainty, for example, Microsoft, which has seen its market value climb 7% by $22 billion. According to analysts, there is something of a bubble going on in tech, and with those except Apple who have really high multiples, it is easy to see how concerns about an overheated market would cause people to flee high-multiple stocks and to seek refuge in lower-multiple stocks.

That sums up today’s highlights! Keep up with all the latest trading events of the day via our social media channels - we’re on Facebook, Twitter, Google+ & LinkedIn.

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.

Just A Minute!

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

Main Trading Events Of The Day: U.S. Core CPI m/m & Unemployment Claims @ 13.30 GMT

Earnings Reports: Groupon Inc. Earnings per share forecast: 2 cents. Release: Close of U.S. markets today. Wal-Mart Stores Inc. Earnings per share forecast: $1.65. Release: Before U.S. markets open today.

WHAT WE’RE WATCHING TODAY

Fed To Change Rate Guidance As Unemployment Falls

Federal Reserve policy makers backed away from their year-old commitment to consider raising interest rates when unemployment falls below 6.5 percent. With joblessness falling faster than expected even as other labour-market indicators show weakness, policy makers agreed it would soon be appropriate to revise their guidance about how long the era of record-low interest rates will remain, according to minutes of their January meeting. Several policy makers also said that in the absence of an appreciable change in the economic outlook, there should be a clear presumption in favour of continuing to trim the Fed’s bond purchases by $10 billion at each meeting. U.S. stocks closed lower on Wednesday after the minutes from the Federal Reserve’s policy setting meeting revealed little consensus about when short-term rates would begin to rise. A larger-than-expected drop in home construction in January also weighed on sentiment.

Facebook to Buy Messaging App WhatsApp for $19 Billion

Facebook Inc, the world’s largest social network has agreed to purchase mobile-messaging startup WhatsApp Inc. for up to $19 billion in cash and stock, making it the biggest Internet acquisition in more than a decade. WhatsApp has more than 450 million members, with 1 million users being added daily. WhatsApp, which would be the company’s biggest acquisition, competes with apps from Twitter Inc., Kik Interactive Inc. and Snapchat Inc., the photo-message startup that rebuffed a $3 billion Facebook bid last year. WhatsApp is also believed to have many users in emerging markets such as China and India.

Industry insiders were said to have been staggered by news of the acquisition of WhatsApp, seeing it as a sign of sheer “desperation” and arguing that the social networking giant has overpaid for the mobile-messaging start-up. They believe that Facebook is so worried that they are bleeding users that they are trying to get their user count up by buying companies that have users which is reminiscent of some of the strategies of the dotcom era.

Facebook investors were also initially unhappy with the astounding valuation the social media giant is paying for the California-based company, which basically values each WhatsApp user at about $42 a customer. After first tumbling more than 5%, Facebook’s shares recovered slightly and were off about 3% in after-hours trading.

Facebook’s purchase of WhatsApp is the company’s largest acquisition yet, dwarfing the $1 billion it paid for Instagram and highlighting its ambition to get a piece of the fast-growing mobile messaging market.

Gold Weakens As Dollar Recovers After Fed Minutes

Gold slipped on Thursday as the dollar firmed after minutes from a U.S. Federal Reserve policy meeting indicated support for continued tapering of its stimulus. The tapering, which highlights a recovery in the U.S. economy, will diminish gold’s investment appeal as a hedge against inflation. The metal sank to a six-month low on Dec. 31 on prospects for a global economic recovery. Gold hit reached $1,314.50 before slipping to $1,309.85, down $1.40. It crossed the psychological level of $1,300 this month, but gains have been capped at a 3-1/2 month high of $1,332.10 hit on Tuesday. According to analysts, this should correct a little because the rise has been too sharp.

That sums up Thursday’s highlights! Keep in touch with us via your favourite social media channels for up-to-the-minute news and information to help you with your trading. We hope you have a profitable day on the markets.

Twitter IPO to Decide Faith of Web Startups

Twitter Inc. (TWTR)’s initial public offering stakes a lot more than shares held by employees and investors. The firm’s performance will impact how dealmakers in Silicon Valley value upcoming Internet startups.

A strong Twitter debut will give the green light to venture capitalists and entrepreneurs for other consumer-Internet IPOs and the level of prices startups can handle in funding. A decline in shares, however—like the one experienced by Faceboon Inc. (FB) after its IPO in May 2012—could hurt valuation of internet startups and drive venture capital downwards.

Facebook’s sharp decline of 50 percent within its first three months as a public company spread its effects all across the startup field. Venture investor loss of faith in internet companies dropped for three consecutive quarters before picking up in the second quarter of this year, according to the National Venture Capital Association.

Twitter’s offer seeks to raise as much as $1.4 billion and it is speculated that the company has already drawn enough interest to sell of the shares in its IPO.

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