Weekly Trading Update
The markets appear to be well and truly in summer mode at the moment and as such the big, volatility inducing figures are hard to come by.
The markets appear to be well and truly in summer mode at the moment and as such the big, volatility inducing figures are hard to come by. However, the GDP numbers should be something to look forward to.
UK
It is eerily quiet on the UK front next week in terms of market moving data. Indeed, if it wasn’t for Wednesday’s GDP figures for the second quarter then we simply wouldn’t have anything to go on. Nevertheless, said figures do look hopeful with the year-on-year reading coming in 0.3% lower than last quarter at 1.7%, but the month on month slightly rising to 0.3%. It goes without saying that these are only estimates and, if this week’s CPI reading was anything to judge by, they should maybe be taken with a healthy pinch of salt.
US
Fortunately, it looks like a much more interesting week across the pond and we get started on Monday with the Existing-Home Sales report for the month of June. A 5.65 million level is ever so slightly higher than the previous reading and so could prove bullish for the dollar. However the CB Consumer Confidence figure, released the next day, is indicating a small drop to 116 from 118.9 which could cross out any gains made in dollar strength. Moving on to Wednesday, we have a number of releases starting with the New-Home Sales. That is followed by the Crude Oil Inventories, always an important figure to watch, and finally the Fed Interest Rate Decision. It is expected to remain unchanged but one should still expect to see a spike in volatility at 19:00 UK time when it becomes official. The week finishes with the Core Durable Goods Orders on Thursday and the GDP figure on Friday. The quarter on quarter reading is expected to jump to 2.5% from 1.4% and so is definitely one to keep an eye on.
Eurozone
We start the week with the German Manufacturing PMI for July. The reading has been slowly increasing over the last year or so but this time round we are expecting a slightly lower level of 59.2 to be hit. It then goes a bit quiet until Friday when we have the CPI figures for Germany, France and Spain. Again, although the analysts would have us believe that these figures will remain unchanged, this is by no means set in stone and so prudent traders will be watching with keen interest when the results are released.
Stock of the week: Netflix
In and amongst all the other earnings one stood out this week, Netflix. They have begun to reshape the TV business over the past few years and they now seem to be having as much success overseas as in the US.
The provider had a record second quarter surpassing forecasts for subscriber growth and boosting its international audience to beyond its domestic reach. The company will look to reach to 20% of broadband households in five of its largest markets outside of the US by the end of the year.
They added 5.2M subscribers in the second quarter far surpassing the 3.2M forecast by analysts. The company said 4.14 million of those new viewers came from outside the U.S., bringing the international total to more than 52 million.
Open (Monday)
7397
Close (Thursday)
7481.2
Change
1.14%
High
7516.8
Low
7357.2
Open (Monday)
21657
Close (Thursday)
21597
Change
-0.28%
High
21676
Low
21466
Open (Monday)
1.3102
Close (Thursday)
1.3
Change
-0.78%
High
1.3127
Low
1.2934
Open (Monday)
1229
Close (Thursday)
1252
Change
1.87%
High
1252.1
Low
1228.3
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