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.
As fast as Rio Tinto might be improving productivity or reducing costs, the underlying commodity market is moving equally quickly to erode those improvements. Arguably the ability of the board to maintain their full-year targets should be seen as a success in itself. Also posting third-quarter figures today, Carrefour, the world’s second largest food retailer, has also suffered at the hands of cooling demand in China. However, improving sales in Europe have underpinned increased optimism over its core market while a leap in Brazilian sales helped edge overall sales ahead of expectations. Yesterday’s Bank of England announcements over ring-fencing regulations were milder than many had expected and the relief rally triggered yesterday in this sector continues to pick up pace today.
At the end of the week we have now seen a tenth of the S&P 500 companies post their third-quarter figures. Even though headlines might suggest a sluggish quarter, we have still seen just over 75% of those firms reporting better-than-expected earnings per share. Sales figures over that same period however have been considerably less impressive. All of this points towards a US corporate picture telling us the same thing as economic releases, that the FOMC should be feeling no increased pressure to raise rates just yet. We are expecting the Dow Jones to open 17 points higher from Thursday’s close at 17,084.