Weekly Trading Update
23.10.15 Friday Morning
ECB Meeting
European equities made significant gains this week following the ECB meeting on Thursday. Interest rates remained unchanged but it was Draghi’s remarks that moved the market. Draghi claimed that the ECB will review ‘a whole menu’ of monetary stimulus options while also reiterating a commitment to adjust the ‘size composition and duration’ of the programme if needed. In addition he revealed that the general council discussed the possibility of a further deposit rate cut, currently at -0.2%. The markets have since begun to price in this expected stimulus package with many believing December is the most likely date.
Bank of China rate cut
The Bank of China went further than the ECB and cut interest rates for the sixth time since November. The one-year benchmark lending rate was cut by 25 basis points to 4.35%. This caused the miners to jump with Glencore trading 6% higher. This move caused global equity markets to jump with investors believing at the very least this is short term positive.
Tech Earnings
Microsoft, Alphabet (Google) and Amazon all beat analyst’s expectations. Alphabet beat estimates by 14 cents, whilst Amazon posted earnings per share of 17 cents. This smashed Wall Street’s expectations with many analysts expecting a loss of 13 cents. Microsoft posted a beat on both earnings and estimates and accounted for 31 points of the Dow's gains. The three stocks opened up more than 8 percent, with Facebook opening at an all-time high.
Stock of the week: GLOBO
Globo has had a pretty disastrous week, opening this Monday above 40p before losing more than 25% closing Thursday evening at 29.45p. The global software provider had been mauled by bears throughout the week as rumours circulated that they were to release a critical report. In addition they told investors they had postponed a proposed high-yield bond issue, with Costis Papadimitrakopoulos, Globo’s boss, blaming “market conditions” , notably Greece and China. Worse news was to come with US fund QCM publishing a scathing report claiming that Globo had conspired to deceive investors and creditors through pervasive and systematic accounting manipulation. They accuse Globo of massively overstating revenue and profit by generating fictitious sales invoices from shell companies created by Globo to pose as legitimate clients. They believe that up to 60% of Globo’s turnover is fabricated and the activities constitute criminal behaviour. Since then Globo has requested suspension of trading and refutes all allegations.
Open (Monday)
6378
Close (Thursday)
6376.3
Change
-0.3%
High
6387.3
Low
6316.3
Open (Monday)
17209.43
Close (Thursday)
17489.16
Change
1.63%
High
17505.18
Low
17129.19
Open (Monday)
1.5438
Close (Thursday)
1.5367
Change
-0.45%
High
1.5509
Low
1.5367
Open (Monday)
1176.5
Close (Thursday)
1163.5
Change
-1.10%
High
1179.1
Low
1163.5
Economic Diary, 26th to 30th October 2015
Monday 26th October
10:00am – EUR German Ifo Business Climate
12:00pm – CBI Industrial Order Expectations
03:00pm - USD New home sales
10:45pm - NZD Trade Balance
Tuesday 27th October
10:30am –GBP Prelim GDP q/q
01:30pm – Core Durable Goods Orders m/m
03:00pm – USD Flash Services PMI
04:20pm – CAD Gov Council Member Lane speaks
Wednesday 28th October
12:50 am – JPY – Retail Sales y/y
1:30 am – AUD CPI q/q
01:30 pm – USD Goods Trade Balance
07:00 pm – USD Federal Funds Rate
Thursday 29th October
09:55 am – EUR German unemployment change
10:30am – GBP Mortgage Approvals
01:30pm – USD Advance GDP q/q
01:30pm – USD Unemployment Claims
Friday 30th October
12:30am – JPY Household Spending y/y
12:30am – JPY Tokyo Core CPI y/y
12:30am – JPY unemployment rate
2:30am – JPY Monetary policy statement
07:00am – BOJ Outlook report and Press conference
08:00am – EUR German Retail Sales m/m
08:45am – EUR French consumer spending
11:00am – Eurozone CPI Flash Estimate
11:00am – Eurozone unemployment rate
01:30pm – CAD GPP m/m
Earnings releases, 26th to 30th October 2015
Monday 26th October
Avacta group – Final Results
Torchmarket Corp – Q3 Results
Tuesday 27th October
Utilitywise plc – Final Results
BP – Q3 Results
Apple – Q3 Results
Twitter – Q3 Results
Wednesday 28th October
GlaxoSmithKline – Q3 Results
Standard Life – Trading Announcement
Petra Diamonds Ltd – Trading Announcement
British American Tobacco – Interim Management Statement
Lloyds Banking Group – Interim Management Statement
Thursday 29th October
BT Group – Q2 Results
Royal Dutch Shell ‘A’ – Q3 Results
Royal Dutch Shell ‘B’ – Q3 Results
Samsung Electronics – Q3 Results
Smith & Nephew – Q3 Results
Kaz Minerals – Interim Management System
Friday 30th October
Royal Bank of Scotland Group – Q3 Results
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