This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
In recent years the reporting season has provided a boost to equity markets, as the majority of companies have announced figures that above analysts’ estimates.
Alcoa revealed a strong set of figures last night despite a recent slump in commodity prices. Natural resources have been in a downward trend over the past few months as traders are concerned that China is slowing down, but the aluminium giant still managed to impress traders with its results.
A knock-on effect can be seen in London, where the mining sector is up 2%; the best performing sector of the day. Ferrexpo has come out on top, as the iron ore producer announced an 11.4% increase in yearly output. The stock is up 10% today. Egyptian gold miner Centamin is bucking the positive trend; the share price is down 4% due to political uncertainty in the country.
Across the pond, the Dow is up 50 points at 15,274; the US equity benchmark opened higher but has been drifting lower as traders have used the Alcoa results as an excuse to lock in profits. We are not expecting a corporate announcement from any major US companies during the rest of the session, but the Federal Reserve is making a statement tomorrow evening (London time).