Global Financial Markets update 7th August 2015

MARKET COMMENTARY

The FTSE 100 is called to open 43 points lower at 6709. UK Gilt 10 Year Yield 1.96%, Spot Gold $1083.8 -0.18%, Brent Crude $49.73 +0.28%. US equities closed mostly in positive territory amid a weaker ADP employment report, better ISM services index and another round of earnings receiving attention today. Tech and consumer staples topped gains, while consumer discretionary and energy were the only major sectors trading lower. China is continuing from yesterday afternoons selling pressure the with CSI-300 down almost 2% at the open. The DOW closed 17540.47 -10.22pts, S&P 2099.84 + 6.52pts, NASDAQ 5139.95 +34.40pts.

PRESS COMMENTARY

Saudi Arabia is returning to the bond market with a plan to raise $27 billion by the end of the year, FT.
Sterling was up against the dollar and the euro – hitting $1.5650 and €1.4386 at one point – amid speculation rates will rise in late 2015 or early 2016, Telegraph.

COMPANY NEWS

Aggreko PLC (AGK.LN) cautioned Thursday that trading will remain difficult through 2016 as it posted a dip in first-half earnings.
Old Mutual PLC (OML.LN) reported a rise in interim net profit amid a strong performance in the U.K. and South Africa.
Munich Re, the world’s biggest reinsurer, raised its profit target for the year after quarterly net income beat analyst estimates on lower catastrophe claims.
Rio Tinto Group, reported a 43 percent drop in first-half profit after iron ore prices collapsed because of a global glut and a slowdown in China’s steel industry.
RSA Insurance Group Plc, reported a jump in second-half profit that beat analyst estimates and restored the interim dividend.
Inmarsat PLC (ISAT.LN) said the launch of a satellite that was delayed due to a launch failure has been rescheduled for the end of August as it reported a dip in first-half earnings.
Aviva Plc, reported a 9 percent increase in first-half profit, boosted by its life business.
Deutsche Telekom AG reported second-quarter sales and profit that topped analysts’ estimates, helped by customer additions in Germany and a weaker euro, which increased earnings from its T-Mobile US Inc. unit.
Enterprise Inns PLC (ETI.LN) said its trading performance has been in line with expectations with comparable income from its estate of leased and tenanted pubs growing by 0.6% in the 44 weeks ended August 1.
Zurich Insurance Group AG said that it may return capital to shareholders if it doesn't buy U.K.-based RSA Insurance Group PLC, while reporting that second-quarter profit was pressured by losses at its biggest business unit.
Deutsche Post 2Q Profit Misses Est; 2015 Ebit Forecast Cut.
Cobham 1H EPS Misses Est., Says FY Trading In Line.
Metro AG, Germany’s largest retailer, agreed to buy Classic Fine Foods Group, a supplier of gourmet products in Asia, and reported third-quarter profit slightly below analysts’ estimates as the decline of the ruble eroded revenue from Russia.
Savills PLC (SVS.LN) advisor Thursday said first-half pretax profit rose 7% as uncertainty over the outcome of the U.K.'s election was outweighed by gains elsewhere.
Adidas AG reported profit that missed analysts’ estimates as the maker of Lionel Messi soccer cleats couldn’t match demand spurred by last summer’s World Cup.
Portmeirion Group PLC (PMP.LN) recorded a rise in earnings on higher revenue, boosted by sales in the U.K., U.S. and other export markets.
source Quilter Cheviot

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