ETX Capital Daily Market Bite, 19th November 2013: Stocks Ease Ahead Of German ZEW; Eyes On Fed
November 19, 2013 9:26 am
November 19th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist.
Stocks again this morning on the soft side as Asian markets tick lower overnight, adding some of the pressure. Overnight in the US, the Dow and S&P500 rose to fresh highs, above the 16,000 and 1800 levels respectively but settled lower. Worth noting that we had a bullish speech from Fed member Dudley who said he was more optimistic about the US economy gaining strength and that monetary policy will be accommodative for some time going forward.
In Asia, China’s pledge to introduce reforms to stimulate the economy in the long term continued to support investor sentiment. Back here in Europe, other than the ZEW survey out of Germany, it’s all pretty low gear in terms of macro news with nothing of note out of the US later. Attention of course remains on the Fed’s meeting minutes for the October policy meeting, due tomorrow.
With Fed head Bernanke on his way out in a matter of months, the market will be closely scrutinizing the minutes to gauge a better understanding of his last possible moves as the chairman. Janet Yellen, the likely candidate of the next Fed head last week gave investors something to cheer about with her pro-easing monetary policies, known as Yellenomics.
The market, although still uncomfortable about the prospects of tapering as early as December, is feeling a little more sanguine on the Fed’s upcoming policy measures in 2014 and beyond as Yellen and other Fed members have spoken favourably for the need of accommodative easing measures in the foreseeable future.
In stocks news, budget airline easyJet reported FY’13 numbers which are better than expected. Profits at the airline jumped 51%, largely thanks to the strategy bearing fruit. In response to the strong figures, management have recommended a £175m special dividend, or around 44.1p per share returned to the shareholders. The outlook appears to be positive but there are some concerns regarding fuel costs.
Elsewhere, ITV said its ad revenues are set to rise around 2% this year after an 11% already registered in the Q3 period. Hit TV shows like X-Factor, I’m a Celebrity and Downton Abbey are all fuelling the pickup in ad revenues for ITV. At the same time, the TV network has increased cost savings and non-ad revenues helping to drive outperformance. The outlook going forward appears to be positive with management expecting double digit revenue growth via Online and Play & Interactive services.
November 19th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist.
Stocks again this morning on the soft side as Asian markets tick lower overnight, adding some of the pressure. Overnight in the US, the Dow and S&P500 rose to fresh highs, above the 16,000 and 1800 levels respectively but settled lower. Worth noting that we had a bullish speech from Fed member Dudley who said he was more optimistic about the US economy gaining strength and that monetary policy will be accommodative for some time going forward.
In Asia, China’s pledge to introduce reforms to stimulate the economy in the long term continued to support investor sentiment. Back here in Europe, other than the ZEW survey out of Germany, it’s all pretty low gear in terms of macro news with nothing of note out of the US later. Attention of course remains on the Fed’s meeting minutes for the October policy meeting, due tomorrow.
With Fed head Bernanke on his way out in a matter of months, the market will be closely scrutinizing the minutes to gauge a better understanding of his last possible moves as the chairman. Janet Yellen, the likely candidate of the next Fed head last week gave investors something to cheer about with her pro-easing monetary policies, known as Yellenomics.
The market, although still uncomfortable about the prospects of tapering as early as December, is feeling a little more sanguine on the Fed’s upcoming policy measures in 2014 and beyond as Yellen and other Fed members have spoken favourably for the need of accommodative easing measures in the foreseeable future.
In stocks news, budget airline easyJet reported FY’13 numbers which are better than expected. Profits at the airline jumped 51%, largely thanks to the strategy bearing fruit. In response to the strong figures, management have recommended a £175m special dividend, or around 44.1p per share returned to the shareholders. The outlook appears to be positive but there are some concerns regarding fuel costs.
Elsewhere, ITV said its ad revenues are set to rise around 2% this year after an 11% already registered in the Q3 period. Hit TV shows like X-Factor, I’m a Celebrity and Downton Abbey are all fuelling the pickup in ad revenues for ITV. At the same time, the TV network has increased cost savings and non-ad revenues helping to drive outperformance. The outlook going forward appears to be positive with management expecting double digit revenue growth via Online and Play & Interactive services.
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