Weekly Trading Update
25.04.14 Friday Morning
Spreadex Weekly Trading Update --- Friday, April 25th 2014
The dominant factor this week has been equities as investors analysed first quarter earnings. Following the long Easter weekend break, European markets started the week positively as participants reacted sharply to US economic data. The global drug maker, AstraZeneca was in focus after they announced they are in bid talks with US mega-cap Pfizer Inc over the weekend. AstraZeneca posted a drop in first quarter profits after its earnings on Thursday, hit by patents expiring on some of its older medicines.
The week started relatively softly as investors found few reasons to keep buying following six straight days of gains on the S&P. Chinese HSBC manufacturing PMI data came in at 48.3 on Wednesday, slightly better than the March figure but not enough to influence buying.
The volatility waited until the end of the week, a surge in decent corporate earnings on Wednesday helped support markets on Thursday after Apple and Facebook earnings exceeded estimates. Apple topped sales by selling 43.7m iPhones in the non-holiday quarter, significantly beating estimates and resulting in revenues driving a record 4.6% higher. Apple took this positive opportunity to tell investors they are to repurchase $30bn of its shares whilst announcing a seven-for-one stock split, pushing shares in the company up over 7% during after-hours trading. Facebook shares also enjoyed gains during after-hours trading; jumping over 3% as the social media giant announced profits have tripled thanks to its mobile advertising.
The earnings results the night before initially supported markets, helped by strong gains in technology stocks. The euro erased all of its early gains on Thursday after European Central Bank president Mario Draghi indicated the risk of asset purchases to tackle deflation risks. Draghi comments showed the ECB could embark on broad-based asset buying plan if the eurozone inflation outlook worsens. Continued unrest in Ukraine played on investors' minds with gold advancing from a 10-week low, increasing investors' appetite for safe haven assets. The string of decent corporate earnings overshadowed the Ukraine crisis until Thursday afternoon after a report indicated that Ukrainian forces killed up to five pro-Moscow separatists in the east of the country. The news erased all of market gains with the Dax taking the full brunt of the news. Before the announcement, the Dax was trading up 83 points on the day which swiftly turned into a negative of 154 points.
The markets soon brushed off the comments to trade flat to slightly higher. The same was seen on Friday as investors remained reluctant to hold positions over the weekend with tensions in Ukraine taking its toll.
Stock of the week - AstraZeneca
AstraZeneca has been in focus twice this week. Initially, over the weekend, it was announced they are in bid talks with US mega-cap Pfizer. The stock surged on the news, opening 5% higher on Tuesday morning. Thursday saw AstraZeneca's shares up further after they announced their first quarter results. The results showed a drop in first quarter profits, hit by patents expiring on some of its older medicines. Pre-tax profits in the quarter fell to $638m (£380m), down from £1.3bn in the same period last year. However, Pascal Soriot, the boss of AstraZeneca, poured cold water on the prospect of a deal between the Pfizer, making it clear he is not interested in mega-mergers. Although the shares took a negative turn on Soriot's comments, they are still up over 5% this week.
Open (Monday)
6658
Close (Thursday)
6699.2
Change
0.62%
High
6723.7
Low
6657
Open (Monday)
16420
Close (Thursday)
16508
Change
0.54%
High
16578
Low
16412
Open (Monday )
1286.95
Close (Thursday)
1292
Change
0.39%
High
1298
Low
1268
Open (Monday)
1.6811
Close (Thursday)
1.6799
Change
-0.07%
High
1.6839
Low
1.6766
Economic Data
Monday 28th April
USD - Pending Home Sales
Tuesday 29th April
EUR - German Prelim CPI
GBP - Prelim GDP
USD - Consumer Confidence
Wednesday 30th April
JPY - BOJ Press Conference
EUR - CPI Flash Estimate
USD - ADP Non-Farm Employment Change
USD - Advance GDP
USD - FOMC Statement
Thursday 01st April
GDP - Manufacturing PMI
USD - Fed Chair Yellen Speaks
USD - ISM Manufacturing PMI
Friday 02nd April
AUD - PPI
GDP - Construction PPI
USD - Non-Farm Employment Change
USD - Unemployment Rate
Earnings
Tuesday 29th April
Telecity Group PLC Q1 2014 Telecity Group PLC Interim Management Statement
BP PLC Q1 2014 BP PLC Earnings Release
Essentra PLC Q1 2014 Essentra PLC Interim Management Statement
UBM PLC UBM PLC Interim Management Statement for 3 months to 31 March 2014
Petropavlovsk PLC Preliminary 2013 Petropavlovsk PLC Earnings Release
Huntsworth PLC Preliminary 2013 Huntsworth PLC Earnings Release
Walker Greenbank PLC Preliminary 2013 Walker Greenbank PLC Earnings Release
Whitbread PLC Preliminary 2013 Whitbread PLC Earnings Release
Infrastrata PLC Interim 2013 Infrastrata PLC Earnings Release
Aberdeen Asset Management PLC Interim 2014 Aberdeen Asset Management PLC Earnings Release
Ensco PLC Q1 2014 Ensco plc Earnings Release
Jazztel PLC Q1 2014 Jazztel PLC Earnings Release
Willis Group Holdings PLC Q1 2014 Willis Group Holdings Plc Earnings Release
Wednesday 30th April
Standard Life PLC Q1 2014 Standard Life PLC Interim Management Statement
International Personal Finance PLC Q1 2014 International Personal Finance PLC Interim Management Statement
Greene King PLC Greene King PLC Pre-Close Trading Update
Subsea 7 SA Q1 2014 Subsea 7 SA Earnings Release
Avon Rubber PLC Interim 2013 Avon Rubber PLC Earnings Release
British American Tobacco PLC British American Tobacco PLC Interim Management Statement for the 3 months ended 31 March
Unite Group PLC Unite Group PLC Interim Management Statement
CSR PLC Q1 2014 CSR PLC Earnings Release
Home Retail Group PLC Full Year 2013/14 Home Retail Group PLC Earnings Release
SVG Capital PLC SVG Capital PLC Interim Management Statement
GlaxoSmithKline PLC Q1 2014 GlaxoSmithKline PLC Earnings Release
Greggs PLC Greggs PLC Interim Management Statement
Thursday 01st May
Lloyds Banking Group PLC Q1 2014 Lloyds Banking Group PLC Interim Management Statement
Lancashire Holdings Ltd Q1 2014 Lancashire Holdings Ltd Earnings Release
BG Group PLC Q1 2014 BG Group PLC Earnings Release
Smith & Nephew PLC Q1 2014 Smith & Nephew Earnings Release
British Sky Broadcasting Group PLC Q3 2013/2014 British Sky Broadcasting Group plc Earnings Release
Go-Ahead Group PLC Go-Ahead Group PLC Interim Management Statement
RPS Group PLC RPS Group PLC Interim Management Statement
Wolfson Microelectronics PLC Q1 2014 Wolfson Microelectronics PLC Earnings Release
N Brown Group PLC Preliminary 2013 N Brown Group PLC Earnings Release
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