FTSE driven higher by earnings updates

Strong gains were seen early on in London, helped by good numbers from a number of firms.

City of London
Source: Bloomberg

A steady stream of reports from companies has helped to keep the FTSE moving upwards after two days of indecision.

Glencore investors will be relieved that the current restructuring efforts are well underway, with the shares rising over 6%, back towards the levels last seen in September when the firm unveiled its emergency placing.

Meanwhile, M&S has been rescued by its food department once again, and while the pre-tax profit figure is looking better it is not entirely clear whether this will be enough to shore up Marc Bolland’s position as CEO.

In Germany Volkswagen shares are in reverse once again, leaving the DAX languishing behind other indices; it was only really a matter of time before fresh problems were unearthed, and as usual investors are scrambling to try and put a figure on the likely cost to the company. One thing is certain, it will be far in excess of the €6.5 billion already set aside.

Tesla shares were in firm demand following numbers last night, as the firm met production expectations, even as it lost $75 million, a number just below estimates.

ADP numbers today mark the start of the countdown to non-farm payrolls on Friday, and with expectations at their lowest level since March 2014 it will be interesting to see how the figures are received.

We have already enjoyed a speech from Mario Draghi today, although the European Central Bank president stayed away from monetary policy observations, but the real fun will be later when Janet Yellen testifies to US lawmakers.

Ahead of the open we expect the Dow Jones to start 20 points higher, at 17,938.

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