May 15, 2013 by
Flash GDP estimates from Germany and France underwhelmed the markets early this morning, missing analyst estimates as the fog refuses to clear from the Eurozone economy.
With recovery optimists so dependent on the occasional glimpse of sunlight from Germany, their miss was particularly disappointing.
CFD trading markets have largely recovered from their early malaise to re-test recent highs as strong corporate numbers took centre stage.
Top of the leader board are budget carrier EasyJet, who provided positive guidance for the year after successfully tapering losses in H1.
Revenues were driven by strong demand for flights from the UK as Brits sought to escape the extended winter chill.
In a similar vein TUI Travel are trading higher after the board outlined a target of $1.3bn in full-year profits and promised a dividend return to shareholders later in the year.
Property giant Land Securities see their stock trading at fresh 4-year highs the net asset value of their portfolio rose to 903p per share (circa 95%) and rental vacancies decreased during the quarter.
With several high profile development projects in the offing for the remainder of the year, shareholders will be hopeful of further growth over the remainder of 2013.
Shares in the London Stock Exchange have also found support as Q1 earnings beat expectations on strong revenues.
CEO Xavier Rolet also offered encouraging guidance on the recovery in the IPO market that will potentially have positive consequences for the group later in the year.
Restaurant Group have managed to overcome the difficult consumer environment in the UK to deliver impressive revenue growth that leaves them seeking aggressive expansion over the remainder of the year.
Up to 35 new restaurants are currently planned, inspiring renewed optimism amongst investors who have sent the share price to all-time highs.
Less impressive numbers from ITV, who are pessimistic about advertising revenues in Q2, and Wood Group, who saw costs overrun on key projects during the period, have taken the steam out of their respective share prices.
However, an unexpected fall in the UK unemployment rate rounded off what has generally been a good news day in the UK.
US CFD Trading Markets
US stocks trade flat today, perhaps understandably after the exuberances of recent sessions, and whilst reports showed manufacturing contracted in April by more than forecast.
In shares CFD trading, Google was up nearly 2% in early trade today, and over $900 per share for the first time.
With the stock up nearly 26% so far this year, investors were further cheered by reports that the tech giant is to launch a subscription music-streaming service.
This is expected to be announced at today’s I/O Conference for developers in San Francisco.
Macy’s reported Q1 profit rising to $217 million from $181 million a year earlier and raised its quarterly dividend by 20% to $0.25 per share.
The stock was up nearly 3% on the open before falling back on traders cashing in their chips, with retailer up more than 7% in the last fortnight.
Dow constituent, Cisco Systems, will be one to watch after today’s closing bell following disappointing results from the likes of Oracle and IBM previously.
Cisco’s earnings will also provide one of the first read across opportunities for April numbers within the technology space. EPS is seen at $0.49 minus exceptional items with revenue seen rising by 5% to $12.17 billion.
FX CFD Trading Markets
Industrial Production figures from the US dropped more than they have done over the past eight months, allowing the Canadian Dollar to bounce back off its three-week lows.
The BoE upgrading its estimate of the UK economy has allowed the pound to strengthen against many of its peers as the Governor King added some positive sentiment saying he thought that a recovery for the economy was in sight.
Further positive news was at hand to give the pound a push in the right direction as UK jobless claims fell in April even though unemployment increased.
The meeting of Russian policy makers to decide what should be done with interest rates as the falling oil prices weighs on the world’s biggest energy exporter has caused the Ruble to drop for the first time in three days.
Commodities CFD Trading Markets
WTI crude took its run of losses to five days, with contracts for June delivery dropping below $93 a barrel ahead of today’s key inventory figures. Analysts are expecting stockpiles to increase by 450 000 barrels.
Confirmation that major Oil companies are facing investigation from regulators regarding possible price fixing has dominated news space, with the legitimacy of traders “independent” submissions being called in to question.
Copper continues its divergence from global equity benchmarks, sliding to a week low while indices press on toward fresh highs.
Often used as barometers for economic growth, investors face poor European growth numbers, Industrial Production in the US missing estimates, worries over the sustainability of Chinese expansion and rising stockpiles.
None of these are likely to spur confidence in the short term outlook.
Gold continued the theme, dropping to a 3 week low as dollar strength puts pressure on dollar denominated commodities.
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CFDs trading update from Michael Hewson, Market Analyst, CMC Markets.
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