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.
Last night, the US index futures were pushed higher after iPhone manufacturer Apple revealed a gross profit margin of 36.9%, which was a touch higher than anticipated. Traders focused on the higher-than-expected US sales.
This morning, chip-maker ARM Holdings announced a 25% increase in first-half revenues; the Cambridge based company is a supplier to Apple. The share price is up 3.7%.
Low cost airline easyJet reported a 10% increase in three-month sales until June; the share price is trading at 1452p, up 9%.
The mining sector is largely unchanged this morning, despite the HSBC Chinese manufacturing purchasing managers index (PMI) falling to an 11-month low. The July reading came in at 47.7, when analysts were expecting a level of 48.6. Yesterday the Beijing administration announced new infrastructure projects to counteract the declining manufacturing sector; this is why natural resources are holding up today.
The latest eurozone manufacturing PMI data came in at 50.1, which compares with the previous month of 48.8. Any reading above 50.0 indicates an expansion, and this increased investor confidence in the eurozone.