The FTSE 100 sold-off as the pressure from the natural resources sector dented the London market. 

Europe

The FTSE 100 reached another six month high yesterday, and it was the mining and oil sectors that helped it reach that multi-month high, and today we are seeing a reversal of that today. The DAX has rallied on the back of strong figures from SAP, and the investment boost for Wirecard from Softbank.

Associated British Food shares are slightly higher today after the company announced a 1.5% rise in first-half revenue to £7.53 billion, which was broadly in line with forecasts. The company cited higher costs for the dip in pre-tax profit. It’s the same old story with Associated British Foods, whereby Primark performed well and the sugar business let the side down. Primark posted a 4.4% rise in sales, and maintained its outlook, while the sugar revenue declined. The fact that Primark managed to register an increase in sales in a though trading environment is impressive.

Credit Suisse shares hit their highest level since October today on the back of solid first-quarter figures. Net profit increased by 8% and the bank’s wealth management division performed well. The global markets division was previously struggling, and now it posted a profit of SFr282 million, topping forecasts. The bank’s common equity tier ratio remained steady at 12.6%, which shows the balance sheet is in rude health.

Boohoo shares are in demand today after the company posted a 49% rise in annual pre-tax profit, and revenue rose by 48%. The online fashion house reported strong demand for its various brands like PrettyLittleThings  Boohoo and Nasty Gal .The group saw UK revenue rise by 37% ,and the international operation saw sales jump by 64%. Boohoo issued a confident outlook too, and it expects revenue to grow between 25% and 30%.

US

The S&P 500 and NASDAQ 100 are showing small gains as the reporting season continues to drive sentiment.

Boeing shares are holding up alright considering the latest quarterly update. EPS came in at $3.16, which undershot the $3.25 forecast, and revenue for the period was $22.9 billion, broadly in line with forecasts. The company suspended its forecast, and has helped the stock, as poor guidance would potentially send the share price tumbling. There are certain things you can defer, but eventually the truth will come out.

Caterpillar posted solid results, but the company cautioned about more aggressive price competition, and the possibility about losing a ‘little bit’ of market share in China. EPS were $2.94 and revenue was $13.47 billion, both exceeded forecasts. The group upped its profit outlook for 2019, despite the mild waring about China’s market.   

Anadarko Petroleum shares have jumped as its popularity has increased, as Occidental have made a $55 billion bid for the company, and that tops the $50 billion bid from Chevron. It would seem that Anadarko’s shale assets are in high demand.

FX

EUR/USD continues to push lower and it is eyeing the 2019 low. It has been a quiet day in terms of eurozone news, the German IFO business climate report slipped to 99.2 in April, which undershot the 99.9 forecast.

GBP/USD has managed to pullback s small portion of the ground that was lost yesterday – when it fell to its lowest level since mid-February. The pound’s volatility has dropped off now that Brexit has been pushed back.

Commodities

Gold has barely moved today and keep in mind the metal fell to its lowest level in over three months yesterday. The firmer US dollar is likely to keep pressure on gold. Given that worldwide stock markets are strong, gold is also missing out as traders are clearly in risk on mode.

Oil saw a jump in volatility on the back of the Energy Information Administration report. Oil inventories jumped by 5.47 million barrels, and the consensus estimate was for a build of only 1.25 million barrels. US gasoline stockpiles dropped by 2.1 million barrels, and the consensus estimate was for a drop of 1.04 million barrels. 

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