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.
It’s been an interesting day as far as economic data is concerned, as a number of figures have come in considerably better-than-expected: this morning’s Germany factory orders came in at 3.8%, expected at 1.1%; the US trade balance saw a deficit of $34.2 billion, which was expected at $43.1 billion. Despite this, the markets have been showing signs of fatigue, and across the board this afternoon’s trading has seen equity indices fall on both sides of the Atlantic.
UK equities have continued to post corporate news. InterContinential Hotels Group, which saw first-half figures up 20% year-on-year, also announced a special one-off dividend of $350million. easyJet have continued to see growing passenger numbers, up 2% on the month. Fresnillo, the London quoted Mexican silver miner, has seen awful figures; mainly due to the collapse in the spot silver price which has directly hitting their bottom line. By day’s end it is off the lows but still down over 9%.
Attention will now shift to tomorrow’s first Q&A session for the new governor of the Bank of England, Mark Carney. Having seen the UK economy benefit from steadily improving data it will be interesting to see if he throws any curve balls.