It’s been a more positive start to the day on Thursday, with UK and European shares higher after three days of losses. The weak data seen from the US, notably the disappointing retail sales has actually increased certainty because a Fed rate hike this year now seems highly unlikely.
Germany’s DAX index and France’s CAC were both higher by over 1% while the UK’s FTSE 100 matched the gains despite a sharp drop in Burberry shares.
It was the rebound in commodity prices that carried the FTSE above its September peaks and likewise the correction in commodities this week has put the index under pressure. On Thursday, the mining and oil & gas sectors are moving higher as Glencore (L:GLEN), Antofagasta (L:ANTO) and BP (L:BP) shares rise alongside copper and oil prices.
Burberry (L:BRBY) shares are sharply lower after missing sales estimates thanks to a slowdown in demand for luxury goods in China. Slowing Asian sales were exacerbated by Chinese consumers spending more abroad in the likes of Europe and Japan where Burberry have less stores than competitors.
US markets look set for a stronger open buoyed by hopes of improved earnings in the banking sector and increased odds of zero percent interest rates for the rest of the year.
Netflix (O:NFLX) shares are expected to slip back on Thursday after reporting earnings and US customer growth that missed expectations. The results show strong worldwide sales figures but Netflix is priced for perfection so the slower US growth has hit shares hard.
Earnings are expected from big banks Citigroup (N:C), Goldman Sachs (N:GS) and US Bancorp (N:USB) with United Health, Philip Morris and AMD also reporting on Thursday.
USA pre-opening levels:
S&P 500: 11 points higher at 2,005
Dow Jones: 97 points higher at 17,021
Nasdaq 100: 25 points higher at 4,371
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