Spreadex Market Update
European indices stretch their (green) legs whilst US investors more tentative ahead of FOMC statement
Yet the index is still dragging its European peers (with the DAX up by over 100 points) arguably because of lingering fears over the US central bank’s lack of clarity, and the general sense of confusion that seems to materialise after every (recent, at least) FOMC statement.
To distract investors from the likelihood of more Fed flimsiness was a flurry of US stocks news. Apple maintained a steady, if decidedly un-Apple, 2% increase post earnings, whilst Twitter shrank its initial 12% plunge, caused by the announcement last night that it effectively added no new US users in the last quarter, to a still ugly 7%. Walgreens Boots Alliance, meanwhile, added to 2015’s pile of mega-M&A moments, revealing it would be buying Rite Aid for around $9.4 billion, a move that caused both stocks to fall by over 7% as investors reacted poorly to the news. And there is still more to come; PayPal is set to reveal its first set of quarterly results since being spun off by eBay, whilst GoPro will be looking to put an end to the heart-stopping fall it has seen since August with its Q3 results this evening.
Leading FTSE higher this afternoon, with the index approaching a 70 point jump, was GlaxoSmithKline. The company saw a 9% rise in sales to £6.13 billion somewhat countered by an 18% drop in earnings per share to 23p; crucially, however, both of these figures were higher than analysts’ estimates and showed that any post-Novartis asset swap hit wasn’t as bad as initially thought. The main driver of Glaxo’s growth was a 65% sales increase for its HIV division, including new drugs Tivicay and Triumeq, more than helping to compensate for the Advair-woes that have plagued the company in 2015. This pushed Glaxo around 3% higher in the aftermath of its results, lifting AstraZeneca (which reports next Thursday) by nearly the same amount.
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