All trading involves risk. Losses can exceed deposits.

Equities finish lower

Equity markets in Europe finished the day as they started; in the red. However, some managed to pull back some of their earlier losses.

All trading involves risk. Losses can exceed deposits.

The theme of today is ‘Good news is bad news’, as stronger-than-expected new home sales in the US signalled to traders that the US Federal Reserve could taper their bond-buying scheme. Even though the preliminary gross domestic product (GDP) figures in the UK were in line with expectations, traders remained focused on the monetary policy of the US central bank.

In the US the Dow is down 86 points at 15,456, as dealers are more focused on the big picture rather than individual companies.

Social media giant Facebook reported better-than-expected revenues after the close last night, and the share price is up a whopping 24%. Despite this, the NASDAQ is unchanged.

General Motors announced second-quarter group sales of $1.2 billion, which compares with $1.5 billion for the same period the year previously. The carmaker reported strong US sales which have offset weak sales in the European market. The share price is down 1.6%.

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.