Spreadex Market Update
Financial whiplash as Greece receives, then spends, bridging loan; big afternoon for US earnings
Beyond this, there was a lack of news on negotiations over a third bailout, meaning the markets had precious little to work with this afternoon; it is for that reason perhaps that the Eurozone indices lost some of their lunchtime lustre, slipping away from their highs as the day went on.
Over in the UK and the FTSE was looking similarly limp as the weight of its commodity stocks only grew as Monday progressed. The continued strength of the dollar means there has been no real respite for the commodity sector since the Shanghai instability began, with both Brent Crude and copper looking a bit peaky. Gold, however, has been the day’s real casualty; whilst it has climbed away from its $1070 intraday nadir, it still hasn’t been able to escape the 5 year lows it hit when the sell-off began in the early hours of the Asian session.
The US markets were preoccupied with the latest developments in the second quarter earnings season this afternoon. Halliburton saw a rather staggering 93% decline in quarterly profits to $54 million due to the continued pressures of the oil price, but somehow managed to beat what must have been rock-bottom expectations, leading to a 2% jump after the bell. Morgan Stanley similarly beat expectations, even if the company still saw a slight fall in profits to $1.81 billion from $1.9 billion year-on-year.
Despite being in an increasingly video-game challenged sector, Hasbro posted an impressive $8.5 million increase in profit to $41.8 million alongside a better than expected 4% fall in revenue to $797.7 million, something that changes to a 5% increase when the current currency headwinds are removed. This left Hasbro as one of the day’s best performers with investors pushing it nearly 6% higher, seeing the stock cross $83 for the first time in its history. However, the commodity weakness and dollar strength meant the Nasdaq struggled to beat last Friday’s record close, with the S&P and Dow Jones similarly flat.
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