Indices Fall Worldwide, Earnings Season Starts Off on a High as Alcoa Posts Strong Q2 Results
July 9, 2014 7:11 am
Equity markets in Europe are trading broadly flat after regional indices suffered their biggest drop in two months in the previous session. Yesterday the Stoxx Europe 600 Index added 0.2% but the UK FTSE 100 fell 0.3% and the DAX in Germany off 0.1%. Asian markets drifted lower overnight after falls on Wall Street on Tuesday. The S&P500 dropped 0.7% to close at 1,963.71 in a second straight day of losses, while the Nasdaq Composite Index slid 1.4%, its steepest one-day decline since May.
Meanwhile, the FOMC is due to release minutes from its June 17-18th meeting. The Fed trimmed monthly asset purchases by $10 billion for the fifth time in a row and stated that economic growth and the job market were showing signs of improvement.
These minutes may show what was behind the thinking at the FOMC which since the meeting has been transmitting more dovish messages in regards to near-term monetary policies, despite the recent improvement in the US labour market.
Overnight in Asia, the downbeat US session affected market sentiment. Hong Kong’s Hang Seng Index fell 1.2% while The Shanghai Composite fell 0.4%. Australia’s S&P/ASX 200 was down 1.1% while Japan’s Nikkei 225 fell 0.4% in a third consecutive fall. Traders were absorbing regional data with Chinese inflation more subdued than anticipated and Australian consumer confidence not rebounding strongly enough. China’s consumer price index rose just 2.3% from a year earlier in June, down from 2.5% in May and well below the government’s target of 3.5%. Australia’s consumer confidence index improved by 1.9% this month, following a 0.2% uptick in June, but that’s still not a great improvement, considering the 6.8% decline in May.
Alcoa beat expectations in its Q2 earnings report, with $5.84 billion of revenue and earnings per share of 0.8%. The firm has been enjoying a period of growth, with shares up over 85% from a year ago. The aluminium firm’s earnings release marks the unofficial start of the earnings season; Citigroup, JPMorgan Chase & Co., Goldman Sachs, Yahoo and Johnson & Johnson are all slated to report their earnings next week.
Equity markets in Europe are trading broadly flat after regional indices suffered their biggest drop in two months in the previous session. Yesterday the Stoxx Europe 600 Index added 0.2% but the UK FTSE 100 fell 0.3% and the DAX in Germany off 0.1%. Asian markets drifted lower overnight after falls on Wall Street on Tuesday. The S&P500 dropped 0.7% to close at 1,963.71 in a second straight day of losses, while the Nasdaq Composite Index slid 1.4%, its steepest one-day decline since May.
Meanwhile, the FOMC is due to release minutes from its June 17-18th meeting. The Fed trimmed monthly asset purchases by $10 billion for the fifth time in a row and stated that economic growth and the job market were showing signs of improvement.
These minutes may show what was behind the thinking at the FOMC which since the meeting has been transmitting more dovish messages in regards to near-term monetary policies, despite the recent improvement in the US labour market.
Overnight in Asia, the downbeat US session affected market sentiment. Hong Kong’s Hang Seng Index fell 1.2% while The Shanghai Composite fell 0.4%. Australia’s S&P/ASX 200 was down 1.1% while Japan’s Nikkei 225 fell 0.4% in a third consecutive fall. Traders were absorbing regional data with Chinese inflation more subdued than anticipated and Australian consumer confidence not rebounding strongly enough. China’s consumer price index rose just 2.3% from a year earlier in June, down from 2.5% in May and well below the government’s target of 3.5%. Australia’s consumer confidence index improved by 1.9% this month, following a 0.2% uptick in June, but that’s still not a great improvement, considering the 6.8% decline in May.
Alcoa beat expectations in its Q2 earnings report, with $5.84 billion of revenue and earnings per share of 0.8%. The firm has been enjoying a period of growth, with shares up over 85% from a year ago. The aluminium firm’s earnings release marks the unofficial start of the earnings season; Citigroup, JPMorgan Chase & Co., Goldman Sachs, Yahoo and Johnson & Johnson are all slated to report their earnings next week.
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