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Positive earnings increase stocks before the Fed's decision



Wednesday, 17:45 GMT

What you need to know

  • S&P 500 increases by 1%; Stoxx Europe 600 Gets 0.4%
  • Apple shares are increased by 5% as the results are confident
  • FTSE 100 runs 1.6% in Europe before
  • The future of iron ore jumps to delivery
  • After the Brexit parliamentary vote, a persistent pound

Overview

Challenges to corporate profits helped to win US and European stock indices as participants expected a new impetus from the German and Beijing federal reserves and trade talks.

Apple offered the markets much needed confidence after the first quarter results, which were released at the end of Tuesday, came better than many were afraid of – sending the iPhone leader's shares faster.

"Apple has actually released its first quarterly decline in holiday sales since 2001, but investors seem to have looked at the slight exaggeration of expected earnings and revenue," said XTB chief market analyst David Cheetham.

Boeing was another bright spot after it reported record year-round earnings, while chip makers outperformed advanced prospects from Advanced Micro Devices.

Throughout the Atlantic, LVMH helped to calm the market's concerns about China after saying that the rapidly growing Asian business has not yet affected the slowdown in the country's growth.

The London FTSE 100 index easily surpassed its continental European peers as it benefited from its relatively large stock of resources. Iron ore prices rose sharply due to supply concerns caused by Brazilian Vale's decision to cut production after a deadly catastrophe last weekend.

The Australian dollar also benefited from an increase in iron ore prices, as well as data showing a slight acceleration of domestic inflation.

Meanwhile, after Tuesday's parliamentary vote, Sterling attracted a lot of Brexit comments in favor of a government that wants to replace the Northern Ireland backstop with "alternative measures".

The pound had slightly changed a day against the dollar – and held over $ 1.30 – despite the "obviously impossible task [prime minister] Theresa May, ”said Chris Beauchamp, Chief Market Analyst at IG.

"Assisting with the gradual disappearance of" without a deal "- even though the EU is still forced, can only happen for so long, and markets will want to see progress in another transaction sooner or later."

Shares

By midnight in New York, S&P 500 increased by 1% at 2666, with Nasdaq Composite 1.1% and Dow Jones Industrial Average up 1.5%.

Apple shares increased by 5%, while Boeing increased by 6.8% and AMD by over 15%. The Philadelphia SE semiconductor index increased by 1.2 percent.

The European-wide Stoxx 600 index increased by 0.4 percent, although Xetra Dax in Frankfurt fell by 0.3 percent. 6.9 percent LVMH leap helped CAC 40 move in Paris by 1 percent higher.

FTSE 100 in London increased by 1.6 percent, and in the base material industry – by 2 percent and energy – by 1.7 percent.

Forex and Fixed Income

The pound sterling remained almost unchanged at $ 1.3060, while the euro was down $ 0.742, up 0.1%.

The dollar index increased by 0.1 percent at 95.91, the euro shrank by 0.1 percent to $ 1.1420, while the green figure increased by 0.1 percent, compared to $ 2,109.52.

The Australian Dollar was 0.6 percent higher than the US name goalkeeper – $ 0.7196.

In the fixed income segment, the 10-year Treasury's yield rose by 2 basis points (2.73), while the two-year yield was 1 bp higher – 2.58%.

The German 10-year Bundes yield decreased by 1 bp to 0.19 percent.

Goods

Oil prices continued to rise as the market takes into account the impact of US sanctions on the market for the Venezuelan state-owned oil group PDVSA. Brent crude oil prices reached 1.8 percent, reaching $ 62.40 per barrel, while the US marker West Texas Intermediate strengthened 2.8 percent to $ 54.78.

Gold was equivalent to $ 1,311 an ounce, after a Tuesday high of eight months.

Alisa Woodhouse Additional Reports in Hong Kong

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