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

Vodafone Buoys The FTSE, As Sterling Slips Despite Punchy CPI

By CMC Markets (Michael Hewson)Stock MarketsMay 16, 2017 11:00
uk.investing.com/analysis/vodafone-buoys-the-ftse,-as-sterling-slips-despite-punchy-cpi-200189346
Vodafone Buoys The FTSE, As Sterling Slips Despite Punchy CPI
By CMC Markets (Michael Hewson)   |  May 16, 2017 11:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

European equity markets are a mixed bag this morning, some indices are marginally in positive territory, while others are fractionally lower, but the common theme is low volatility. London’s higher exposure to commodity driven stocks has given it an edge over its continental counterparts.

Miners like Rio Tinto (LON:RIO) and BHP Billiton (LON:BLT) are still benefiting from China’s massive infrastructure announcement over the weekend, and oil titans such as BP (LON:BP) and Royal Dutch Shell (LON:RDSb) are buoyed by Saudi Arabia’s and Russia’s collusion in the crude oil market. Both nations are keen to keep the cut in oil production until March 2018, in a bid to maintain higher prices.

EasyJet (LON:EZJ) is suffering this morning after revealing a widening of its first-half loss. Rising revenue and a record number of passengers in the six-month period were not enough to offset the impact of the weaker pound. The stock is up 44% since the October 2016 low, and the airline stated that summer bookings are up on last year so Brexit clearly isn’t impacting every aspect of its business.

Vodafone (LON:VOD) is in demand this morning despite reregistering a €6.1bn annual loss. The telecoms company wrote-off a large loss in its Indian operation but traders focused on the increased dividend and rosy outlook for next year.

Sterling spiked after the UK released strong CPI numbers, the headline number came in a 2.7%, which is well above the Bank of England’s (BoE) 2% target, and the core figure jumped from 1.8% in March to 2.4% in April. The weakness in the pound since the EU referendum is largely behind the jump in the cost of living, but some BoE members will not ignore these figures.

Across the pond, we are expecting the Dow Jones to open 10 points lower at 20,971 and we are anticipating the S&P 500 to open at 2399, down 3 points from last nights close. Home Depot (NYSE:HD) and Dick’s Sporting Goods (NYSE:DKS) are the highlights of the earnings releases from the US today, and in terms of economic data, dealers will be focused on April’s building permits and housing starts reports.

Disclaimer: CMC Markets is an execution only service 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

Vodafone Buoys The FTSE, As Sterling Slips Despite Punchy CPI
 

Related Articles

Vodafone Buoys The FTSE, As Sterling Slips Despite Punchy CPI

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