- Earnings solid coming from the US continues to push futures up overnight.
- Oil prices held steady, supported by a report of rising U.S. crude inventories as well as the introduction of sanctions against Iran.
- Elon Musk tweeted last night regarding taking Tesla private. Stock up as he quoted a $420 price target.
- Crypto markets slump following SEC bitcoin ETF delay.
- Today there’s a 39.1 point FTSE div (updated from 39.0 on the dividend adjustment post) and a 25.8 Dow div.
Asian overnight: Another good session for US markets helped to drive Asia higher, while oil prices continued to rise thanks to Iran tensions. Tokyo, Hong Kong and Australia rose, but Shanghai fell 0.6% as trade war fears continued to hit equities there. The US has said that it would be implementing a further 25% in tariffs on $16bn of Chinese imports in two weeks time. Trade balance data from China showed a smaller than expected surplus although exports increased more than expected in July as did imports into the region. While the S&P 500 failed to hit a new record, the index is now within easy distance of a fresh record, proving that bullish sentiment remains strong despite trade war rhetoric.
UK, US and Europe: UK earnings from key firms such as Prudential, Glencore, and G4S help to offset a lighter macro calendar, although we do have a speech from FOMC member Barkin, plus weekly crude inventories and a New Zealand rate decision.
South Africa: The Jse Top 40 Index is expected to open flat this morning tempering overnight gains with this mornings losses in global equity markets. Tencent Holdings is trading 1.74% firmer in Asia suggestive of a positive start for major holding company Naspers. BHP Billiton is up 0.95% in Australia suggestive of a positive start for local diversified miners.
Economic calendar - key events and forecast (times in BST)
Source: Daily FX Economic Calendar
Corporate News, Upgrades and Downgrades
- Paddy Power Betfair said that pre-tax profit rose to £106 million for the first half, while revenue was up 7%. The dividend was raised 3% to 67p. However, it downgraded its annual earnings guidance, to £460-480 million, from a previous £470-495 million.
- Glencore reported a 13% rise in net income for the first half, to $2.8 billion, with a strong performance from metals and minerals and its energy products segments.
- PageGroup saw first-half profit rise 18% to £67.2 million, while revenue was up 12% to £751.6 million. The dividend was raised by 5.1% to 4.1p per share, while a special dividend of 12.73p was also declared.
Countrywide upgraded to neutral at Credit Suisse
Rio Tinto upgraded to add at AlphaValue
Ibstock upgraded to buy at Goodbody
Pendragon upgraded to neutral at JPMorgan
Alstria Office cut to hold at Kepler Cheuvreux
Maersk downgraded to hold at SEB Equities
Rotork downgraded to hold at SocGen
Spire Healthcare downgraded to sell at Berenberg
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