European stock markets are higher this morning following the strong finish in Asia overnight. The standoff between the Trump administration and Beijing is still ongoing, but during the lull, dealers have stepped in and snapped up relatively cheap stocks.
Standard Life (LON:SLA) Aberdeen revealed a 12% drop in first-half pre-tax profits. Assets under management and administration dipped by 2.6%. Assets under management at the fund division fell to £557 billion, down from £575.7 billion – broadly in line with expectations. The firm blamed the ‘challenging’ macroeconomic and political environment for the underwhelming performance. The interim dividend was 7.3p – in line with forecasts. The stock has been in decline since January, and a break below 300p could pave the way for further losses.
intercontinental Hotel Group (LON:IHG) announced a 9.7% jump in operating profit to $406 million, topping the consensus estimate of $397.7 million. Revenue per room jumped by 3.7%. China was the standout performer as revenue per room jumped by 10%, while the US and EMEA saw growth of 2.7% and 3% respectively. The stock has been pushing higher since September, and while it holds above 4,595p – 200-day moving average – its outlook could remain positive.
Commerzbank (DE:CBKG) shares are slightly in the red after the bank revealed a slight decline in the liquidity position. The common equity tier 1 ratio – a measure of liquidity – slipped to 13% from 13.3%. The bank swung to a profit of €389 million, topping the forecast of €340.83. The finance house even pledged to return to paying a dividend next year, but traders remain concerned about the state of the bank’s balance sheet. The share price has been falling since January, and if the bearish move continues it could target €8.
The US dollar index has cooled this morning after hitting its highest level since mid-July yesterday.
EUR/USD has bounced back today, and Germany’s disappointing industrial output report couldn’t derail the euro rally. The report showed a 0.9% decline, and the consensus estimate was for a 0.5% drop.
GBP/USD has been helped along by the Halifax house prices report which showed a 1.4% jump in July, which easily exceeded the 0.2% rise that economists were expecting.
Twilio shares will be in focus after the company exceeded earnings’ forecasts last night. Earnings per share were 3 cents, while analysts were expecting a loss of 5 cents per share.
We are expecting the Dow Jones to open up 98 points at 25,600 and we are calling the S&P 500 up 7 point at 2,857.
"DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.
No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.