Spreadex Market Update
Glaxo adds to FTSE’s earnings boost; FOMC statement still to come
The pharmaceutical giant has had a tough few months after hitting year highs in April and May, slipping below its 2015 start price at the start of July; today brought with it a much-needed 3% jump, however. A slide to 17.3p in core earnings per share was better than the 16.7p expected, whilst sales rose 6% to £5.9 billion alongside a 4% jump in net profit to £936 million. Glaxo’s Advair problems may not be going away, with the asthma drug’s sales slipping by another 6% in the second quarter, but this report was enough to reassure investors for now.
The FTSE will be hoping for a similar stock boost tomorrow: BT will be aiming to match the staggering figures announced by Sky this morning, AstraZeneca will be hoping for a similarly surprising Q2 like Glaxo whilst Shell will be looking to outperform BP. Diageo, meanwhile, will just be trying to navigate around the brewing, and Tesco like, distribution scandal currently under investigation by the SEC.
With the DAX and the CAC posting strong gains, the Eurozone was the focus of Christine Lagarde’s press conference this afternoon. As technical talks continued in Greece, Lagarde called for ‘significant’ debt relief for the country, one of her ‘four legs’ needed for a successful deal, the others being sensible fiscal targets, sufficient financing, and rigorous structural reform. It’s another reminder of the difficulties that lie ahead, difficulties that could get a proper airing if actual third bailout negotiations begin next week.
The US markets echoed the performance of their European counterparts this afternoon, but with their eyes firmly on this evening’s Fed statement. Whilst the statement is important in general, it comes at a time when investors are clamouring for some clarity in regards the timing of a US rate hike. September remains the most talked about lift-off date, so any comments reaffirming or disagreeing with this sentiment are likely to move an info-hungry market.
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