Market chatter around the possibility of an ECB rate cut either this week or at their December meeting
has seen traders putting risk back into the market this morning, reclaiming some of the ground we lost to Fed tapering speculation last week.
The different recovery stages in which major economies find themselves may well make for some interesting divergence in the global equity indices in the coming six months,
as Central bankers in different geographies tighten/loosen their belts.
That the Eurozone is in need of additional stimulus at a time when the UK and US look to be on the verge of growing their way out of trouble will provide further ammunition to those who argue that centralizing monetary policy across the region was doomed to failure from the start…
Top of the pile in London this morning are HSBC
who bucked the trend for mediocre announcements from blue chip banks in recent weeks, reporting a 30% jump in profits as successful cost cutting filtered through to the bottom line. The FX fixing probe continues to loom large over the sector
capping enthusiasm to some extent, though Bernstein point to the group’s strong counterparty rating and liquidity resources in reiterating their outperform rating.
Suffering contrasting fortunes are engineering firm Weir Group
, who sit bottom of the index down over 7% after missing on Q3 revenue and downgrading their full year sales forecasts.
The move returns the stocks to levels beneath 2100p not seen since the July lows.
are join them in the red this morning on read-across from rival budget carrier Ryan Air, who forecast a fall in full-year profits as competition in the sector and falling fares forced the Irish firm to consider the drastic measure of not treating their customers like farm animals.
Revolutionary proposals such as a customer services number with a human being at the other end, and the ability to book a seat on your chosen flight are now in the offing, as competition in the space pushes the Ryan Air board into unchartered territory…
The NY ISM Business Survey at 14:45 and Factory Orders Data at 15:00
mark the highlights of the macro calendar stateside this afternoon, with many traders still trying to get a firm grip on whether a December taper can be fully priced out of their calculations…CMC Markets is an execution only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.