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

Europe Stronger As Catalan Situation Cools

Published 31/10/2017, 10:15
Updated 03/08/2021, 16:15

Stock markets in Europe are in positive territory as the political situation in Spain has cooled somewhat. The German market is closed today as the country celebrates Reformation Day, and with a major market on holiday, we could see relatively small trading ranges today.

BP (LON:BP) had a strong third-quarter as underlying profits doubled. Oil and gas production rose by 14% in the third-quarter. Now that Brent crude oil is north of $60 per barrel, ramping up of production will stand to BP in future earnings releases. To sweeten shareholders, BP announced a $1.6 billion share buyback scheme, investors have been patient with the oil giant ever since the Deepwater Horizon disaster. The share price is up 3.2%.

Shares in Ryanair (LON:RYA) are up 5.2% after the airline posted an 11% jump in first-half profits, and the company kept its full-year guidance unchanged – despite the scandal surrounding pilots pay and cancelled flights. Industrial relations have improved and the cost base is anticipated to tick up by €100 million on account of the pay dispute. The true impact of the flight cancellations debacle will be discovered down the line, as it is a possibility that some customers could be put off Ryanair permanently.

Weir Group (LON:WEIR) shares are down 4.8% after the company stated its operating profits would be ‘slightly’ lower than previously anticipated. The company saw a 56% rise in third-quarter oil and gas orders – so the business is in rude health, but whenever a company warns on profits, investors bolt for the door. Jon Stanton, the CEO described the energy sector as ‘challenging’ – this added to the negative sentiment.

GBP/USD is largely unchanged this morning and there are no major economic announcements expected from the UK today, so volatility could be low. Traders are counting down to the Bank of England (BoE) meeting on Thursday – and it is likely we will see a rate hike.

EUR/USD is a touch in the red this morning after a small bounce back in the US dollar. The greenback slipped yesterday afternoon after it was relieved that Mr Trump’s tax reforms might be gradual. This morning, French GDP remained steady and inflation ticked up to 0.9% on a month-on-month basis.

We are expecting the Dow Jones to open 36 points higher at 23,384, and we are calling the S&P 500 up 3 points at 2575.

At 1pm (UK time) the US will announce the Case Schiller house price index, and the consensus is for a month-on-month reading of 0.3% and a year-on-year reading of 6%. At 1.45pm (UK time) the Chicago PMI report will be released, economists are expecting a reading of 61.

Electronic Arts (NASDAQ:EA), Kellogg (NYSE:K), Mastercard (NYSE:MA), and Pfizer (NYSE:PFE) will announce their quarterly results today.

Disclaimer: 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.