Volatility in Europe is low as the major markets have taken their cues from the mixed session in Asia overnight. There is still a little optimism doing the rounds in light of the US-Mexico trade deal, but investors haven’t been given another reason to buy into the market.
Petrofac (LON:PFC) revealed a 20% jump in first-half profits to $190 million, but when you take account of exceptional items, the company swung to a loss of $17 million. The firm is continuing its restructuring programme, and it has sold-off approximately $800 million worth of non-core assets this year. The company won a contract in Algeria worth $600 million, and it said it is well positioned to win other contracts. The interim dividend remained unchanged, and that should keep shareholders sweet. The stock has been rising since June 2017, and if the bullish move continues it could target 700p.
James Fisher (LON:FSJ) had a strong start to the year as revenue and pre-tax profits jumped by 12% and 20% respectively. The engineering firm said that all divisions of the business saw revenue growth in the first six months, and marine support was the standout performer. The group hiked the interim dividend by 9.5%, and confirmed it had strong prospects for the second-half. The share price has been in an upward trend since February, and if the positive moves continues it could target 2,000p.
At 1.30pm (UK time) the US will release the preliminary second-quarter GDP, and the consensus estimate is 4%.
The firmer greenback has put pressure on EUR/USD. France released respectable growth figures, but that did little to hold back the US dollar. In the second-quarter, the French economy grew by 0.2%, on a quarterly basis, and that was in line with economists’ forecasts.
GBP/USD is largely unchanged after it was reported that the UK and the EU have dropped the October deadline for reaching a deal, and it is believed that both sides are looking to mid-November as a timeframe for an agreement to be reached.
Alphabet (NASDAQ:GOOGL), Google’s parent, will be in focus today after President hit out at the company last night. The US leader claimed that Google and other tech companies have a bias against him, and Mr Trump accused the company of rigging searches to paint him in a light negative light.
We are expecting the Dow Jones to open up 24 points at 26,088 and we are calling the S&P 500 up 3 point at 2,900.
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