The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
FTSE supported by AstraZeneca results
The FTSE 100 spent most of the day sitting comfortably above 6700. This put it at its highest level since the first half of March, supported by positive feedback from Facebook and Apple results in the US overnight.
AstraZeneca results were just the pill needed to keep the positive atmosphere going, and the stock has held on to its gains in the afternoon session.
Building firm Travis Perkins is looking a little more lopsided as the day goes on, however, shedding all of its initial pop and now back to last week’s lows around £17.60. Having seen the shares double since 2012, investors can be forgiven for profit-taking, and it now seems that £20 is the roof on the price action for now.
US markets jittery
In the US, hopes were high that the NASDAQ would rise triumphantly from its sick bed and race higher. These expectations have been dashed, and in fact we were rapidly treated to a fresh visit to yesterday’s lows. Several days of consecutive gains left the index looking a bit overextended and vulnerable to some opportunistic shorting.
All US indices began the day with gains, but reports of a press conference in Russia caused a rapid selloff. These reports were swiftly denied, and now the indices are trying to pretend nothing has happened, although the swift selloff shows this market is still jittery.
Facebook itself has held on grimly despite some fairly see-saw price action, but Apple is the standout winner, soaring majestically with an 8% gain from yesterday’s close thanks to market-beating results. Amazon and Microsoft are next in the queue, with Caterpillar providing an amusing, industrial interlude between bouts of earnings from tech companies.
Copper surges higher
Copper prices have leapt higher this afternoon, touching a six-week high. Optimism about the global economy has picked up, boosting hopes of increased consumption. The surge higher means that $3.20 is back in focus, for the first time since early March. The Putin press conference rumour boosted gold and silver too, showing the safe-haven appeal still has its adherents. We’ve seen gold bounce between $1280 and $1330, and it looks as if we’re about to test the top of its range again.
USD/JPY gains vanish
Volatility returned to USD/JPY on the press conference rumours, as the day’s gains were rapidly wiped away on safe-haven buying of the Japanese currency. It did briefly probe ¥102.10 but seems to have found a floor around yesterday’s lows of ¥102.20. Vladimir Putin’s failure to appear in front of the cameras assuaged fears that he was about to crank up the crisis level in Ukraine, allowing the frenzy of activity to ebb somewhat.