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.

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