Spreadex Market Update
Dow Jones struggles for momentum as Coca-Cola loses its fizz post-Q1 results
Ticking a mere 6 points higher (at best) this afternoon the Dow Jones had little impetus to push back towards the 18100 level it teased on Tuesday. The index’s main weight this Wednesday ended up being Coca-Cola, which fizzed 5% lower following its first quarter update. With customers continuing to shift away from sugar Coke’s soda sector volumes remained flat across the last 3 months, that stagnation admittedly compensated for by a 7% increase in non-carbonated volumes, leaving the company with a 2% rise in global beverage volume for Q1. However, Coca-Cola still isn’t moving away from the sugary foundation it built itself on fast enough, causing a 4% fall in revenue to $10.28 billion (a smidge under expectations) and a slide in EPS from 35 to 34 cents year-on-year.
The Eurozone was the perkiest region this Wednesday, the DAX and CAC managing to overcome their early reticence to both post 0.2% rises as the afternoon got underway. The region will be in firm focus tomorrow, with the latest ECB press conference just after midday. However, unlike March’s stimulus heavily speech from Mario Draghi little is expected on Thursday, although investors will likely still want confirmation that the central bank President still has some tools left in his utility belt if the current measures fail to have an effect.
Underperforming its peers the FTSE fell by 20-25 points as Wednesday continued, the morning’s soft jobs report preventing the index from basking in the mining sector’s rebound. Tomorrow will hopefully provide the FTSE with some more positive data to play with, retail sales expected to edge up to -0.1% from February’s dismal -0.4%, whilst the public sector net borrowing figure is forecast to shrink to £5.6 billion from £6.5 billion month-on-month.
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