Weekly Trading Update
09.05.14 Friday Morning
As we come to the end of a short week for European markets, investors will look back on a relatively choppy week with markets gaining and falling off the back of the Ukraine crisis and technology stocks over in America. The week began well for American technology stocks, helped by Apple as their shares jumped 1.4% to break through the $600 level providing a much needed boost for the NASDAQ after the huge tech slump.
European markets began the short week on a positive note, opening higher after traders enjoyed another long weekend. Throughout the week, the FTSE 100 maintained around the 6800 level which is just shy of the record high of 6950 which was seen on Dec 30 1999.
The Aussie dollar began the week on a slightly negative note as Building Approvals came in significantly below consensus at -3.5%, however the AUD/USD didn’t react to the poor data. Data from China’s factory activity was also released at the beginning of the week, slightly disappointing the markets despite increasing slightly to 48.1. Investors will be looking for the figure to edge towards the key 50 area which will then show an expansion rather than a contraction. Markets in Seoul and Hong Kong were closed at the beginning of the week, keeping volumes low.
By mid-week trading, the FTSE 100 took a slight hit as Barclays fell over 4% when the bank reported a 5% fall in quarterly profits. On Thursday, Barclays also reported they are to cut 14,000 jobs as the investment area of the bank shrinks. Also dragging the FTSE 100 down was Aberdeen Asset Management as they were trading down over 6% due to a fall in pre-tax profits.
The US Dollar was a key mover throughout the week, reaching extremely low levels. Cable (GBP/USD) hit five year highs on Wednesday trading just shy of 1.7000 level as activity in the UK services sector expanded at a quicker than expected pace, rising to 58.7.
Twitter took a huge hit towards the beginning of the week, dropping more than 18% as insider shares became eligible for sale after a six-month lock in period ended. Approximately $4bn was wiped off Twitters market cap, closing at $31.85.
US markets advanced (except the NASDAQ) on Thursday after a choppy open as Federal Reserve Chair Janet Yellen testified before the Joint Economic Committee of Congress in Washington DC. Yellen managed to convince investors the US economy is on the mend, boosting the Dow and S&P.
The NASDAQ continued to sink further despite other US markets advancing, led lower by Yahoo shares which fell 6.6% as Alibaba Group filed for an IPO. Groupon Inc. dropped 20% as sales and profits failed to meet estimations whilst Twitter continued its decline, falling a further 3.7% on top of its 18% decline a day earlier.
Stock of the week – Tesla
Electric car-maker Tesla reported their Q1 financial results on Wednesday evening of $0.12 per share, higher than the $0.07 expected by analysts. However, shares dropped over 10% during post-market trading after analysts cut their price targets on a depressed outlook.
Open (Monday)
6840
Close (Thursday)
6822
Change
-0.26%
High
6842
Low
6766
Open (Monday)
16508
Close (Thursday)
16539
Change
0.19%
High
16621
Low
16355
Open (Monday)
1.6872
Close (Thursday)
1.693
Change
0.35%
High
1.6996
Low
1.6854
Open (Monday)
1306.1
Close (Thursday)
1.693
Change
-1.24%
High
1315.7
Low
1285.2
Economic Calendar
Monday 12 May
- AUS NAB Business Confidence
Tuesday 13 May
- CNY Industrial Production
- EUR German ZEW Economic Sentiment
- AUD Annual Budget
- USD Core Retail Sales
- USD Retail Sales
Wednesday 14 May
- GBP Claimant Count Change
- GBP Unemployment Rate
- GBP BOE Gov Carney Speaks
- GBP BOE Inflation Report
- USD PPI
Thursday 15 May
- USD Core CPI
- USD Unemployment Claims
- USD Philly Fed Manufacturing Index
Friday 16 May
- USD Building Permits
- USD Prelim UoM Consumer Sentiment
Earnings
Monday 12 May
- Gem Diamonds Interim Management Statement
- Centrica Q1 Interim Management Statement
- E-Therapeutics Prelim 2013 Earnings
- London Mining Q1 2014 IMS and Production Report
Tuesday 13 May
- EasyJet Interim Earnings Release
- TUI Travel 2014 Earnings Release
- Ark Therapeutics Interim Management Statement
- Xchanging Interim Management Statement
- National Express Group Interim Management Statement
Wednesday 14 May
- Awilco Drilling Earnings
- Centaur Media Interim Management Statement
- Novae Group Interim Management Statement
- Hilton Food Group Interim Management Statement
- Galliford Try Interim Management Statement
- Admiral Group Interim Management Statement
- John Wood Group Interim Management Statement
- Partnership Assurance Group Interim Management Statement
- KNOT Offshore Partners Q1 Earnings
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