Spreadex Market Update
Mixed morning for stocks leads FTSE lower, with Shell beating, and RBS missing, expectations
Royal Dutch Shell is by and large leading the index’s oil stocks higher after it beat expectations to post a net income of $3.2 billion, higher than the $2.44 billion forecast. However Royal Bank of Scotland is taking the rest of its own sector with it as the bank announced £446 million in losses for the first quarter; unsurprisingly it fell by over 2% after the bell, with Barclays and Lloyds (which announces its results tomorrow) following suit.
Zoopla was the big winner of the morning, and the latest participant in the M&A fever that has hit the markets in 2015. The property portal announced this morning it is set to buy uSwitch in a move designed to capitalise on the ever present need for homeowner’s to save money on their bills. Investors were unequivocally pleased with this news, pushing Zoopla over 16% higher this morning as it reached a 6 month high. On the other end of the spectrum, Ophir Energy fell by 12% this morning after Poland’s richest man Jan Kulczyk put his £92 million stake in the company on the market.
After two freefalling afternoons in a row, the Eurozone is looking to its region-wide inflation and unemployment figures this Thursday morning to drag it out of the dirt. Spanish inflation and GDP both beat expectations, giving a bit of hope for the Eurozone’s own figures later today, whilst French consumer spending fell due to a drop in average energy expenditure. However, Greece is still looming large with the rumoured reforms list failing to materialise on Wednesday, leading the Eurozone indices lower after the bell.
The euro and the pound look like they are tentatively continuing their strong performance this morning after they ran the dollar ragged yesterday afternoon. The USA’s weak GDP figure led, rather predictably, to dovish comments from the Federal Reserve with Yellen and co. stating they need to see sustained economic growth before interest rates will be raised. This, of course, leaves September as the earliest realistic window for a rate hike; however if the US continues on its current trend, even this can-kicked date will look optimistic.
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