Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China’s Stimulus Package Lifts Stocks; UBS Post Solid Q2 Figures

Published 24/07/2018, 12:09
Updated 03/08/2021, 16:15

European stock markets are higher in the wake of Beijing’s plans to stimulate the economy. The Chinese government unveiled plans to boost domestic demand in the face of heightened trade tensions. T

he second-largest economy in the world has been slowing down in recent years, and the tariffs imposed by the US are making matters worse. The proactive move by the Chinese authorities has lifted investor confidence around the global.

UBS (LON:0R3Ts) shares are higher this morning after the bank reported a solid set of second-quarter figures. Profit for the period jumped by 12% to SFr 1.68 billion, which comfortably exceeded the SFr 1.4 billion that equity analysts were expecting. The investment banking division was the driving force behind the jump in earnings, as the department saw a 26% jump in profit. The wealth management unit saw outflows of SFr 1.2 billion. The bank cited seasonal tax related outflows in the US for the exodus of funds from the division. UBS issued a broadly positive outlook, but cautioned that the rise in protectionism could hurt investor confidence. The stock has been in a downward trend since January, but has pushed higher today, and if it can hold above the SFr 15.00 region its outlook could remain positive.

Superdry (LON:SDRY) shares have taken a knock after Julian Dunkerton, the co-founder, sold £71 million worth of stock in the company. Mr Dunkerton did not give a reason for the share disposal, and has agreed not to sell any more shares in the next 90 days. Since leaving the company in March Mr Dunkerton has focused on his hotel chain and charity work. The announcement of the disposal prompted stockbroking firm, Liberum, to downgrade the company from buy to hold.

EUR/USD is in the red this morning, and the single currency enjoyed a short-lived boost on the back of the impressive German manufacturing update. The report showed a reading of 57.3 in July up from 55.9 in June, and the consensus estimate was 55.5. It is concerning that the single currency gave back its gains so quickly.

Alphabet (NASDAQ:GOOGL) shares will be in focus today after the company reported better-than-expected second-quarter figures last night. Earnings per share were $11.75, while analysts were expecting $9.59. Revenue was $32.7 billion, which also topped forecasts.

We are expecting the Dow Jones to open up 74 points at 25,118 and we are calling the S&P 500 up 8 points at 2,815.

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. "

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.