The overnight sell-off in Asia has spilled over into Europe this morning. Concerns about global trading tensions and some disappointing earnings updates have soured investor confidence.
GVC Holdings (LON:GVC) shares are in demand after the company announced a joint venture with MGM Resorts International. The announcement comes ahead of the American football season, which starts in September. Earlier this year, a supreme court ruling in the US paved the way for sports gambling to be legalised, and this prompted many European gaming companies to get exposure to the US. GVC shares hit an all-time high today, which tells you how bullish investors are on the stock.
Ibstock (LON:IBST) shares are in the red after the company issued a profit warning. The brick-maker has been operating at full capacity for an extended period, and now a ‘12 month period of increased maintenance’ is planned, which will lead to production problems. The company now anticipates full-year profit to be between £121 million to £125 million, while the previous forecast was between £130 million and £134 million. The company feels it is in the long-term interest of the business to carry out the maintenance work.
Caterpillar (NYSE:CAT) will be in focus today as the company reveals its second-quarter earnings. The heavy machinery manufacturer has enjoyed a pickup in business in the past two years, with a turnaround in the natural resources sector. The robust housing sector in the US has also been beneficial to Caterpillar.
EUR/USD is higher on the back of the dip in the US dollar. Spanish CPI held steady at 2.3% in July, while economists were expecting a rate of 2.4%.
GBP/USD has also been helped by the slide in the greenback. UK mortgage lending was £3.85 billion in June, up from £3.77 billion in May. The consensus estimate was £3.95 billion.
We are expecting the Dow Jones to open down 26 points at 25,425 and we are calling the S&P 500 down 4 points at 2,814.
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