US awaits figures as Europe disappoints

After a slow day yesterday, with the FTSE closing at 6595, the UK markets opened slightly higher at 6606.8, jumping 18 points in the hour after the bell to hit 6624.7. This rise comes after a mixed morning for big British companies, with earnings for Rolls-Royce, Ted Baker, ITV and the London Stock Exchange Group all posted this Thursday. Despite ITV’s revenues rising 8% to £1.8 billion, their viewership share dropped by 5%. This spells long term trouble for the British broadcaster as flagship shows like The X Factor underperform, causing ITV’s stocks to fall for the second day in a row to 198.6. Rolls-Royce Holdings presented a blunt statement this morning, refusing to expand on their plans for job reduction, the car producer stating that their guidance for 2014 and 2015 remains unchanged. This tight-lipped approach led Rolls’ stocks to open flat at 859.25.

Unlike Britain’s other clothing companies, Ted Baker dismissed warm autumn woes to post a growth in revenue of 15.7%. However, sentiment surrounding Britain’s clothing sector still remains bearish, with Ted Baker falling 16.5 points this morning to 2063.1. Finally in British earnings news, the LSE Group reported a pre-tax profit of £136.8 million, up £20 million from this point last year, shares growing nearly 2% to 2065.5. These generally strong reports from British companies suggest the FTSE will continue to recover from its weaker day yesterday.

In world news, the DAX opened 30 points higher at 9277.8 this morning, with the euro building on yesterday’s rise to open 0.2% higher at $1.23531 per euro. The DAX’s growth is sorely needed good news for Germany, as their inflation figures were a mere 0.8%, with similar weak numbers for France at 0.5%, and Spain continuing its deflation at -0.1%. In Japan, after revised industrial production figures came in at 0.2% higher than expected, reaching 2.9%, the Nikkei closed at 17469.5, continuing its rise since the Bank of Japan QE decision. There was worse news for China, as their industrial output slowed, falling from 8% to 7.7% in figures announced today.

Finally, in America the Dow Jones finally slowed down last night, however slightly, closing 1 point lower than it did on Tuesday at 17611.5. However, futures are suggesting an opening of around 17630 for the US market. This figure will largely be influenced by the US unemployment claims numbers to be announced this afternoon, with analysts forecasting a figure around 282k. And there could be further volatility in the Dow and dollar as Federal Reserve chair Janet Yellen speaks later today.