Weekly Trading Update
19.09.14 Friday Morning
Similar to last week, this week was once again dominated by the run-up to the Scottish referendum on Independence. Markets closely tied to interest rates and sterling have been in a state of constant flux as polls have acted to lubricate the wheels of volatility.
Monday saw futures initially trading lower on the previous week‘s close following a negative session from Asia as Chinese data failed to meet expectations. Asian stocks therefore traded at five-week lows. The dollar strengthened. On London’s main market, SABMiller delighted its investors after news flow broke of speculative bid rumours for Heineken, sending the shares up by more than 10 percent at one point. The bid, however, was later rejected The FTSE 100 closed the day unchanged at 6,804.
Both Tuesday and Wednesday saw relatively unremarkable days for the FSTE 100, with the index losing over 20 points in aggregate. By Contrast, Wednesday for US markets was a different affair entirely. The Fed trimmed its asset purchases as expected but remained cautious on raising rates too soon, allowing the market to continue to lie in a sweet spot of good news is good, and bad news could keep rates low. The Dow closed up 100 points at 17,131. But investors too remain cautious about buying too much into the persisting bubble amongst fixed income-like securities, helping to prevent prices from becoming frothy.
Thursday was the night before the week’s so-called main event: the referendum. Scots would conclude voting at around 21.00 BST with the final result due for release at around 07.00 the following morning. In spite of the recent momentum behind the ‘Yes’ vote campaign and the poll that put them ahead at one point, the market began to price in the win for the ‘No’ campaign by about 18.00, as sterling inflated in lockstep with interest rate sensitive equities. The FTSE 100 previously closed out the day up 38 points 6,819. Predictably, then, shortly after when the ‘No’ had been confirmed the market sold off, as is often the case when prices sometimes over-shoot the prediction.
Stock of the week: Monitise Plc
Monitise Plc, the electronic payment firm, announced Thursday that Visa, Inc., its biggest customer, is to consider its options over its over five percent stake in the company, signalling a potentially huge knock to other investors’ confidence over future prospects. Since adding over 50 percent to its price last year, Monitise shares had halved before the announcement. But worse lay ahead.
On the announcement, the shares were immediately sent limit-down and uncrossed at 38p, later closing at below 30p. Investors will now spend the next few weeks seriously appraising their stakes in the firm. And while this week’s round of selling has brought the valuation lower in line with the news, there could be more selling yet.
Open (Monday)
6806
Close (Thursday)
6819
Change
0.19%
High
6822
Low
6748
Open (Monday)
16988
Close (Thursday)
17266
Change
1.63%
High
17275
Low
16951
Open (Monday)
1.6258
Close (Thursday)
1.6373
Change
0.7%
High
1.6409
Low
1.6163
Open (Monday)
1227.4
Close (Thursday)
1226.9
Change
-0.04%
High
1242.5
Low
1216.7
Earnings
Monday, 22 SEP 2014
Gemfields PLC - Full Year 2014 Gemfields PLC Earnings Release
Dairy Crest Group PLC - Half Year 2014 Dairy Crest Group PLC Trading Statement Release
Allergy Therapeutics PLC - Full Year 2014 Allergy Therapeutics PLC Earnings Release
Finsbury Food Group PLC - Full Year 2013 Finsbury Food Group PLC Earnings Release
Tuesday, 23 SEP 2014
PZ Cussons PLC - PZ Cussons PLC Interim Management Statement Release
Close Brothers Group PLC - Close Brothers Group PLC Earnings Release
Faroe Petroleum PLc - Half Year 2014 Faroe Petroleum PLC Earnings Release
A.G.Barr PLC - Half Year 2014 A.G.Barr PLC Earnings Release
Regenersis PLC - Full Year 2014 Regenersis PLC Earnings Release
Carnival PLC - Q3 2014 Carnival PLC Earnings Release
Wednesday, 24 SEP 2014
Clinigen Group PLC - Full Year 2014 Clinigen Group PLC Earnings Release
Week Ahead
Mon
9:00am EUR ECB President Draghi Speaks
10:00am EUR Consumer Confidence
USD Existing Home Sales
10:05am USD FOMC Member Dudley Speaks
1:00pm CAD Gov Council Member Wilkins Speaks
7:30pm USD FOMC Member Kocherlakota Speaks
Tuesday
3:30am EUR German Flash Manufacturing PMI
EUR German Flash Services PMI
4:00am EUR Flash Manufacturing PMI
EUR Flash Services PMI
4:30am GBP BBA Mortgage Approvals
GBP Public Sector Net Borrowing
8:30am CAD Core Retail Sales m/m
CAD Retail Sales m/m
9:00am USD HPI m/m
9:20am USD FOMC Member Powell Speaks
9:45am USD Flash Manufacturing PMI
10:00am USD Richmond Manufacturing Index
2:00pm USD FOMC Member Kocherlakota Speaks
6:45pm NZD Trade Balance
Wednesday
4:00am EUR German Ifo Business Climate
9:00am CHF SNB Quarterly Bulletin
EUR Belgian NBB Business Climate
10:00am USD New Home Sales
10:30am USD Crude Oil Inventories
12:05pm USD FOMC Member Mester Speaks
Thursday
8:30am USD Core Durable Goods Orders m/m
USD Unemployment Claims
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