Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Markets Mixed As Sentiment Divided; U.S. Tech Stocks Under Pressure

By CMC Markets (David Madden)Market OverviewNov 05, 2018 16:43
uk.investing.com/analysis/markets-mixed-as-sentiment-divided-us-tech-stocks-under-pressure-200204536
Markets Mixed As Sentiment Divided; U.S. Tech Stocks Under Pressure
By CMC Markets (David Madden)   |  Nov 05, 2018 16:43
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Europe

Equity markets in Europe are mixed as dealers are still concerned about the political fight between Italy and the EU. The cost of borrowing for the Italian government ticked up and this left traders feeling uneasy. Intesa Sanpaolo (LON:0HBC) was downgraded by Goldman Sachs (NYSE:GS) on Friday, and this is still playing on investors’ minds. The Wall Street titan said the Italian bank was ‘well managed’ but it feels that profits will fall due to the poor macroeconomic outlook.

Micro Focus (LON:MCRO) shares are higher this afternoon after the group confirmed that full-year revenue will be at the lower end of the -6% to –9% range that they originally expected. The share price took a battering in March when the group issued a profit warning, and today’s update has helped market confidence somewhat. The firm announced they indent to restart their share buyback scheme .The stock price has been range bound since April, and while it remains below the 200-day moving average at 1,432p, its outlook should remain bearish.

Hiscox (LON:HSX) shares are lower today after the group issued a cautious outlook. The insurance company announced a 14% increase in gross written premiums for the third-quarter, but cautioned that a number of big ticket claims are in the pipeline. The company confirmed that its European subsidy will be up and running in the New Year, and it said that its Brexit preparations are going well. The stock has been in a solid upward trend for over five years, and while it holds above its 200-day moving average at 1,531p, the bullish trend should last.

Ryanair (LON:RYA) announced that traffic numbers in October rose by 11%. The company has been keen to offer low fares in order to win around customers in the wake of the negative press it endured due during the recent industrial action.

Ashtead (LON:AHT) shares are in the red after Barclays (LON:BARC) lowered its price target to 2,200p from 2,520p.

Just Group (LON:JUSTJ) had its price target lowered by JP Morgan to 100p from 102p.

US

The major US indices are a mixed bag, and the tech sector is the biggest faller. Late last week, we saw the bullish sentiment run lose a little steam. Dealers remain cautious about the US-China trading relationship.

Apple shares (NASDAQ:AAPL) are in the red after the company after President Trump confirmed he was looking into antitrust violations. The stock finished last week on a sour note after it confirmed it missed iPhone sales estimates. The tech giant also stated it would no longer announce its unit sales of iPhones and iPads, which suggests that would rather focus on the average selling price – which is rising. Other tech giants like Amazon (NASDAQ:AMZN) will be under watch in relation to the potential antitrust violation.

The mid-term elections will be focus and it is believed we could see the first polls at around 11pm GMT on Tuesday. There is speculation the Democrats will take control of the House of Representatives, and there is talk the Republicans will maintain their narrow majority in the Senate. Should the Democrats do well, it might prompt President Trump to soften his protectionist stance.

FX

EUR/USD hasn’t moved much today. The eurozone Sentix investor confidence report fell from 11.4 to 8.8 – a two-year low. The uncertainty surrounding Italy’s proposed budget deficit is also weighing on the euro. Volatility in the session has been low, and the bulk of the move has come from the US dollar. The euro has been losing ground since late September, and if the negative move continues it could target 1.1300.

GBP/USD is still in the red but has made a decent recovery, especially in light of the poor services data from the UK. The British services PMI report dropped from 53.9 in September to 52.2 in October, and the consensus estimate was 53.3.

Commodities

Gold hasn’t moved much today, but it is encouraging to see that it has held onto most of the gains that were at the back end of last week have been kept. The lack of volatility in the US dollar has translated into a tight trading range in the gold market.

Oil has pushed higher for a change .The long awaited sanctions on Iran have set in, and even though they aren’t as strict as dealers initially expected, the oil market has been driven higher. The US have allowed 8 countries to continue to purchase oil from Iran without fear of repercussion. Given how far oil has fallen in recent weeks, it’s no surprise bargain hunters have stepped in.

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

Markets Mixed As Sentiment Divided; U.S. Tech Stocks Under Pressure
 

Related Articles

Markets Mixed As Sentiment Divided; U.S. Tech Stocks Under Pressure

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
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
or
Sign up with Email