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

StanChart And BP Lift The FTSE, Sterling Hits Eleven-Week High

By CMC Markets (Jasper Lawler)Market OverviewApr 27, 2016 09:15
uk.investing.com/analysis/stanchart-and-bp-lift-the-ftse,-sterling-hits-eleven-week-high-200126519
StanChart And BP Lift The FTSE, Sterling Hits Eleven-Week High
By CMC Markets (Jasper Lawler)   |  Apr 27, 2016 09:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

UK and Europe

European shares were directionless on Tuesday, giving back early gains as markets meander sideways ahead of the latest policy decisions from the Federal Reserve and Bank of Japan.

Big gains from Standard Chartered (LON:STAN) and BP (LON:BP) which reported well-received earnings and stable oil prices enabled a small rise on the FTSE 100, though tech companies dragged ahead of first quarter results from Apple (NASDAQ:AAPL). The German DAX and French CAC indices both slid to five-day lows.

Shares of BP gained as much as 4% after the oil major reported a sharp decline in profits and revenues but managed to conjure up results that were better than expectations. BP has made strides in reducing costs and boosted trading revenues in the face of decade-low oil prices and a warm winter that hobbled refining margins.

Standard Chartered impressed with its latest set of results that like other top banks saw a sharp reduction in profits that came ahead of expectations. Share rose to the top of the FTSE 100 as pre-tax profits of $589m, down from $1.4bn a year ago lifted hopes that the bank has turned a corner after its first full-year loss in 26 years.

Whitbread (LON:WTB) shares were amongst the top risers on the UK benchmark equity index after the company raised its dividend in response to growing profits at Costa and its hotels and restaurants. Increasingly loyal coffee-drinkers meant same store sales at Costa grew 2.9% with store expansion meaning total sales were up 16.3%. Revenues at Whitbread’s hotels and restaurants including Premier Inn rose 9.8%. There is increasing competition and technological innovation in food retail and accommodation and Whitbread is taking the approach of rapid expansion to dominate market share.


US

US stocks opened higher amid generally positive corporate results, though gains were limited by weak economic data and nerves ahead the Fed meeting and anticipation over Apple’s Q1 results.

Procter & Gamble (NYSE:PG), 3M (NYSE:MMM), DuPont (NYSE:DD), Coach (NYSE:COH) and Hershey (NYSE:HSY) all beat profit estimates whilst Eli Lilly (NYSE:LLY) and Whirlpool (NYSE:WHR) missed.

Stocks have evidently paused ahead of the meeting since there is a distinct risk the Fed converts to a more neutral tone in order to put a June rate hike back on the table.

FX

The US dollar was weaker across the board on Thursday after data showed durable goods orders and housing starts rose slower than forecast in March whilst consumer confidence dropped in April. The dollar has fallen for two days, undoing gains from the prior two days. The US dollar index is essentially unchanged in April, a sign of uncertainty ahead of the Fed meeting.

The British pound proved the biggest beneficiary of dollar weakness as Brexit fears continue to ease despite a Daily Telegraph poll showing support for leaving has risen to 43%. GBP/USD rose above 1.46, its highest in eleven weeks.

Commodities

Risk-on sentiment in equities, BP Q1 earnings ahead of expectations and a weaker dollar all contributed to higher oil markets on Tuesday.

Dollar weakness was a recipe for modest strength in precious metals on Tuesday, though gains were limited as gold and silver traders sit on their hands before the Fed meeting. The tone from the Fed will likely play a big role in which direction gold breaks from its seven-week range.

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

StanChart And BP Lift The FTSE, Sterling Hits Eleven-Week High
 

Related Articles

StanChart And BP Lift The FTSE, Sterling Hits Eleven-Week High

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