Corporate newsIn corporate news, better earnings from Halliburton and Allergan failed to break losses in equities. Halliburton closed mostly flat after reporting Q2 earnings which met expectations. Meanwhile, Allergan rose 2.3% after earnings came in ahead of expectations, while the company announced job cuts of 1,500 to fend off a hostile takeover from Valeant Pharmaceuticals. McDonald’s fell 1.5% ahead of its earnings release tonight, after its meat supplier was found to have sold expired chicken and beef to the fast food chain in China. Elsewhere, hedge fund Elliott Capital Management staged a corporate raid on data storage company EMC, sending its stock soaring by 5%. Elliot plans to break up the company and sell off its VMware unit. Overall, the S&P500 fell 0.2% and the Dow lost 0.3% overnight. This week likely holds the highlights of the earnings season with more than one third of Dow components and nearly 150 S&P500 companies reporting. Market leaders in the tech sector, Apple and Microsoft, both report tonight.
Currencies and commoditiesIn the currency markets, the dollar was mostly stronger against the majors due to safe-haven flows, in the absence of market data. The single currency continues to hover above the 1.35 levels, although these support levels could easily give way if officials in the eurozone were to decide to step up sanctions against Russia when they meet today. With the death of 193 Dutch nationals in the MH17 crash, European officials are facing mounting pressure to implement stricter sanctions, with resultant economic concerns. Officials will have to satisfy both the calls of the UK and US, while grappling with a reliance on Russian oil. Elsewhere, the pound fell against the dollar after home prices came in weaker than expected. In the commodity complex, US oil prices rose near three-week highs, with expectations that crude inventories would shrink due to the summer driving season. In Asia, the Jakarta composite made gains ahead of the Indonesian election results which place president elect ‘Jokowi’ as the forerunner.
IMPORTANT NOTE AND DISCLAIMERS Market Opinions Any opinion(s), news, research, analyses, prices, or other information contained on this website / document is provided as general market commentary and are from publicly available resources or otherwise obtained, and does not constitute investment advice nor does it seek to market, endorse, recommend or promote any investment or financial product. CMC Markets Singapore Pte Ltd. (Reg No./UEN: 200605050E) (“CMC Markets”) will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Accuracy of Information The content is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. CMC Markets has taken reasonable measures to ensure the accuracy of the information, however, does not guarantee its accuracy, and will not accept liability for any loss or damage. CMC offers no financial advisory services in any of the content or vouch for the veracity of any information. Distribution The content of this publication is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or products referred to or mentioned are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of the reader to ascertain the terms of and comply with any local law or regulation to which they are subject. Third Parties CMC Markets may provide you with opportunities to link to, or otherwise use, sites and services offered through or by third-party(ies). Your use of these third-party services is subject to such terms as posted by these third-party(ies). We have no control over any third-party site or service and we are not responsible for any changes to any third-party service or for the contents thereof, including, without limitation, any links that may be contained in or accessible through such third-party service. These links are provided solely as a convenience to you. You will need to make your own independent judgment regarding your interaction with these third-party sites or services. Our inclusion of advertisements for, or links to, a third-party site or service does not constitute an endorsement of any of the representations, products or services listed therein. Important Note Each reader/recipient agrees and acknowledges that: (a) no express undertaking is given and none can be implied as to the accuracy or completeness of this document; (b) this document does not constitute in any way a solicitation nor incentive to sell or buy any Shares, Stock Options and Contracts For Difference (CFDs) and similar and assimilated products; (c) each reader/recipient of this document acknowledges and agrees to the fact that, by its very nature, any investment in Shares, Stock Options, CFDs and similar and assimilated products is characterised by a certain degree of uncertainty; that consequently, any investment of this nature involves risks for which the reader/recipient is solely responsible and liable. It is to be noted that past performance is not necessarily indicative of future results. In this respect, past performance of a financial product do not guarantee any and are not an indication as to future performance; (d) the use and interpretation of this document require financial skill and judgement. Any utilisation whatsoever by the reader/recipient, relating to this document as well as any decision which the reader/recipient may take regarding a possible purchase or sale of Shares, Stock Options, CFDs and similar and assimilated products, are the sole responsibility and liability of the reader/recipient who acknowledges and agrees to this as a condition precedent to and prior to any access to this document; (e) as a result of the above, all legal liability directly or indirectly arising whatsoever.