Spreadex Market Update
Rate hike alarm rings following best jobless claims for over 4 decades; Amazon eyeing $500 ahead of Q2 results
Of course, the dollar had a field day on this news, exacerbating the pain felt by the pound (which was already suffering after this morning’s weak UK retail sales). What is good for the dollar is bad for the Dow, with the flagship US index slipping to mild losses after the bell. Yet more important than the market reaction is what this jobless figure means for the Fed rate hike debate; it adds to the growing calls for a September lift-off, and gives the central bank even more to chew on ahead of its second quarter report next week.
The weakening of copper and the continued losses for BP meant the FTSE couldn’t escape the day’s flatness, with little to lift it away from its 10 day lows. The DAX and CAC, meanwhile, struggled to post anything more than mild gains as the euro gobbled up most of investors’ good will towards the region.
The Golden Arches only had a light glow coming off of them this afternoon, as McDonald’s reported a slower than expected drop in profit and revenue, but a speeding up of the decline in US and global sales, with the former falling by 2% whilst the latter tumbled by 0.7%. Given how contradictory many of McDonald’s product promotions have seemed of late it is unsurprising that they couldn’t entice customers, regardless of CEO Steve Easterbrook’s best attempts at making the institution a ‘modern, progressive burger company’.
Post-close brings with it another US mega-stock this Thursday, with Amazon aiming to emulate Netflix, not Apple, with its Q2 results. Following the spectacular Prime Day performance, which the company claims was more successful than its 2014 Black Friday, Amazon is expected to post a 16% increase in revenue to $22.4 billion. Of course, as Apple found out, un-met expectations can be a terrible thing in the eyes of the markets. However, given that the company has seen a near 15% climb in the aftermath of both its last 2 quarters, if Amazon meets its estimates market fireworks could be in store, as the online seller aims to break $500.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
