European futures are indicating a strong open this morning as investors woke up to the news that yesterday’s voting in the Greek parliament went ahead as expected. Creditors requested that a second package of bills be approved before starting to negotiate a third bailout programme. This was approved by the Greek parliaments with 230 votes in favour and 63 against. Tsipras is now having a difficult time controlling the party and the general public.
Markets are also being helped by a streak of positive published results. Credit Suisse published results that were better than expected. The Zurich based bank reported a net income for the second quarter ending in June of 1.1 billion Swiss Francs. A figure that is higher than what analysts were expecting.
During yesterday’ session marketstraded loweracross all classes. The S&P 500 and the NASDAQ ended the session -0.24% and -0.70% lower respectively. Credit indices also traded in a bearish mode. At face value,the weakness in equity markets was led by a selloff in Apple shares.The technology company published disappointing results in terms of iPhone sales which pushed the shares to trade as much as 4.2% lower. However, the main overriding theme in the markets at the moment is the weakness in the commodity markets. It is important to look out for developments in this sector, not only because of the effect on companies who deal directly in commodities or oil, but also because it may have an effect on the Fed policy decision, which ultimately is the next big thing in markets at the moment.
Today is a relatively quiet day in terms of data with the Euro area consumer confidence gauge being the main figure expected. Over in the US analysts will also be looking at the Initial Jobless Claims which is published every Thursday.
On the corporate front, analysts will be watching out for Caterpillar earnings who report results today.Apart from its importance as a company, the outlook of Caterpillar is highly regarded by analysts as a good indication of the economic outlook for the months to come. Giant Food chain McDonalds is also scheduled to report today.
This article was issued by Darin Pace, Treasury Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.