MARKET UPDATE 29/07/2016

The FTSE 100 is called to open 8 points higher at 6729
UK Gilt 10 Year Yield 0.7125 Spot Gold $1334.53 -1.10 Brent Crude $43.16 -0.54
$ per £ 1.3176
$ per € 1.1083
€ per £ 1.1891
U.S. stocks rose, with the S&P 500 Index staging an afternoon advance as it heads for a fifth monthly gain amid a raft of corporate results. Trading was light as investors awaited a Bank of Japan policy decision and data tomorrow on the strength of the American economy. Facebook advanced after reporting sales and user growth that beat analysts’ projections. Ford Motor Co. plunged as quarterly profit fell short of estimates and it warned that income targets are at risk. Those were just two of the companies moving on a busy earnings day, with more than 60 membersof the S&P 500 Index reporting, including Amazon.com Inc., MasterCard Inc. and Alphabet Inc. The S&P 500 Index rose 0.2 percent to 2,170.05, 0.2 percent from an all-time high set July 22. The index has gained more than 3 percent in July. The Dow Jones Industrial Average lost 15.89 points to 18,456.28. The Nasdaq 100 Index rose, pushing its July gain to 6.9 percent. U.S. stocks are in a rare holding pattern. Since the S&P 500 hit the fourth straight all-time high on July 14, the benchmark gauge has alternated between gains and losses, finishing every day less than 0.5 percent from the previous close. The 10-day streak is the longest since data began in 1927.
PRESS COMMENTARY
The listed banks in the EU’s latest stress tests would have to raise close to €900 billion to convince investors that they have enough capital to withstand another crisis, a feat that would allow them to finally overcome their weak valuations, three academics have argued, FT.
The Bank of Japan expanded its purchases of exchange-traded funds and doubled the size of a U.S. dollar lending program, while refraining from boosting the pace of government-bond purchases that have formed the main part of its monetary stimulus. Governor Haruhiko Kuroda led his board in voting to expand an ETF program to 6 trillion yen a year, the BOJ said in a statement in Tokyo Friday. In an unexpected development, Kuroda has ordered an assessment of the effectiveness of BOJ policy, to be undertaken at the next meeting, which is scheduled for Sept. 20-21.
COMPANY NEWS
Barclays Plc profit fell by more than half in the second quarter as the bank posted a 1.9 billion- pound pretax loss from the unit that houses the businesses and assets its trying to sell or wind down and cuts Dividend to 1.0p Vs 2.0p.
Pearson PLC said it is trading in line with its expectations and reiterated its 2016 guidance, adding that it goals to 2018 are unchanged. It recommended a dividend of 18 pence, unchanged from a year earlier and in line with previous guidance, it said
Reckitt Sees 2016 LFL Rev. at Lower End of Target Range
UBS Group AG said profit slipped 14 percent in the second quarter as both wealth management and investment banking generated less revenue during a rocky period for markets.
IMI Sees FY Results In Line With Current Market Expectations
Indivior 2Q Net Revenue Beats Estimates, Raises 2016 Forecast
Sony Corp. posted a surprise quarterly profit as strength in its PlayStation division outweighed a slowdown in sales of image sensors
UBM 1H Adj Operating Profit Up, Keeps Trading Outlook for Year
Foxtons’ profits fall 42% as Brexit uncertainty bites
Qatar Airways Ltd. will further raise its stake in British Airways owner IAG SA, adding to its holding after the shares plunged in the wake of the Brexit vote. Source Quilter Cheviot.

www.finance-spain.com

MARKET UPDATE 25/07/2016

The FTSE 100 is called to open 6 points higher at 6736.

UK Gilt 10 Year Yield 0.7976 Spot Gold $1317.62 -4.96 Brent Crude $45.94 -0.98

$ per £ 1.3128
$ per € 1.0971
€ per £ 1.1966

U.S. stocks rose, sending the S&P 500 Index to a fresh record, as investors showed confidence corporate earnings will not derail a rally that’s headed toward a fifth week. Equities rebounded as some of the week’s best performers were among the biggest contributors to Friday’s climb. Microsoft Corp. and Biogen Inc. added to their strongest weekly increases since at least March. Verizon Communications Inc. rose 1.3 percent as it’s said to be near a deal to buy Yahoo! Inc. Gains were tempered by disappointment that followed earnings from General Electric Co., Honeywell International Inc. and Apple Inc. supplier Skyworks Solutions Inc. The S&P 500 rose 0.5 percent to 2,175.03, a seventh all-time high in the last 10 sessions after going more than 13 months without one. The benchmark gained 0.6 percent this week, the smallest such advance in its four-week run. The Dow Jones Industrial Average added 53.62 points, or 0.3 percent, to 18,570.85, and the Nasdaq Composite Index increased 0.5 percent. About 5.6 billion shares traded hands on U.S. exchanges, 21 percent below the three-month average.

PRESS COMMENTARY

Apple is on the verge of selling its billionth iPhone, a rare achievement for any consumer electronics company and one that highlights the maturation of the smartphone market, FT.

European banks from Barclays to BBVA are launching another round of cost-cutting as they brace for conditions to deteriorate this year, due to low interest rates, the UK vote to exit the EU and the latest stress test results, FT.

COMPANY NEWS

Aberdeen Asset Management PLC reported a 2.9% rise in assets under management during the third quarter, citing the diversified asset and client base of the business.

William Hill confirms received a highly preliminary approach from 888 and Rank regarding a potential combination of the three companies.

Ryanair Holdings Plc warned it may lower its fiscal 2017 profit forecast amid weakening travel demand stemming from Britain’s decision to exit the European Union.

L’Oreal SA agreed to acquire IT Cosmetics for $1.2 billion in its largest acquisition in eight years, adding more than 300 skin-care and makeup products to its lineup.

Hammerson PLC said that it will pursue a secondary listing on the Johannesburg Stock Exchange to access a wider pool of international capital, as it reported a sharp drop in first half pretax profit because of the falling value of its properties.

Hiscox Ltd reported its bottom line has benefited from sterling weakness after the Brexit vote as it posted a rise in interim pretax profit, and said it may set up an EU-based insurance company following the U.K.'s exit from the European Union.

Nintendo Co. shares plunged 17% after the company said late Friday that the financial impact from the worldwide hit Pokemon Go will be limited.

Royal Philips NV, reported second-quarter profit that rose more than expected on cost savings and said earnings will improve in the second half of the year.

Speedy Hire PLC said that a shareholder has requested a general meeting of the company to propose a resolution for the removal of Executive Chairman Jan Astrand.

CVS Group PLC said it expects its fiscal 2016 earnings to be modestly ahead of market expectations. Source Quilter Cheviot.

www.finance-spain.com