Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Earnings Help Shares, ECB Denies Rumours, Inventories Smack Oil

By CMC Markets (Jasper Lawler)Stock MarketsOct 22, 2014 16:03
uk.investing.com/analysis/earnings-help-shares,-ecb-denies-rumours,-inventories-smack-oil-1276
Earnings Help Shares, ECB Denies Rumours, Inventories Smack Oil
By CMC Markets (Jasper Lawler)   |  Oct 22, 2014 16:03
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
MRW
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SPRTC
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.98%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
+0.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
-0.26%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SBRY
-0.08%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Europe

Shares in Europe were mostly rising today although not at the frenetic pace of yesterday with the European Central Bank denying rumours of further stimulus and bank stress test results leaving investors undecided whether to believe the rumour or the denial.

The FTSE 100 stalled out at the short term top made on the 10th October around 6,400; digesting ECB rumours and mixed earnings from British American Tobacco (LONDON:BATS) and Glaxosmithkline (LONDON:GSK). Top UK banks were largely able to brush off rumours that banks in Europe would fail ECB stress tests when results are released on Sunday.

The ECB had to officially deny two reports; one relating to plans for additional asset purchases and another that eleven banks would fail the central bank’s stress test.

Spanish newswire Efe listed eleven banks who had reportedly failed the ECB bank stress test including banks in Cyprus, Portugal, Italy and Greece and the corresponding bank’s share prices fell on the news. The shares remained under pressure despite the ECB’s denial because if there were to be any bank failures; it’d most likely come from the PIIGS so that makes the story quite plausible.

The Bank of England remained on hold as expected according to the latest minutes; voting 7-2 to keep rates unchanged and 9-0 to keep the asset purchase facility at current levels. Cable and UK stocks head south following the release because while the voting was as expected, the minutes themselves were rather dovish with members citing multiple risks to the UK recovery.

Supermarkets were all falling today thanks to a combination of the Kantar data pointing to slowing sales and the Waitrose head Mark Price calling the business model of Tesco (LONDON:TSCO), Sainsbury (LONDON:SBRY), Asda and Morrison (LONDON:MRW)20 years out of date.

Spirit Pub Co Plc (LONDON:SPRTC) showed a 60% profit increase after agreeing to a takeover offer fromGreene King (LONDON:GNK) whereas Heineken (AMS:HEIN) who turned down an offer from Sabmiller (LONDON:SAB) missed estimates blaming bad weather.

 

US

Shares in the US edged higher in early trading thanks to better corporate earnings including strong results from Yahoo! Inc (NASDAQ:YHOO) and Boeing Company (LONDON:BOEB) which raised its outlook for the year as well as further evidence of waning inflation from September’s CPI easing pressure on the Fed to hike rates.

Higher food prices but lower energy costs contributed towards CPI remaining at 1.7% annual growth during September. Inflation in the US is showing no real sign of wage pressures thanks to the low-paid nature of a lot of the jobs that have been created since the financial crisis.

With conflicting price direction coming from food and energy prices; US consumers may probably won’t have any more disposable wealth and retail sales could remain stagnant.

 

FX

The US Dollar strengthened today after the US CPI report came in slightly stronger than expected despite core prices slowing in the month.

The euro came under renewed pressure thanks to rumoured bank stress test failures and the possibility of an expanded ECB bond buying program. EUR/USD fell back below 1.27 and could be in line to re-test the 1.25 low.

The British pound fell after BOE minutes were slightly more dovish than expected; GBP/USD fell to just above the key psychological 1.60.

 

Commodities

Crude oil prices rolled over again thanks to a stronger dollar and oil inventories much higher than expected; WTI has tried and failed twice in two days to get through $84 pb and could now be headed back down to $80. 

Copper, having rallied after the better than expected Chinese GDP data fell back down again today alongside most commodities.

 

CMC Markets is an execution only service 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

Earnings Help Shares, ECB Denies Rumours, Inventories Smack Oil
 

Related Articles

Earnings Help Shares, ECB Denies Rumours, Inventories Smack Oil

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email