Stock indices in Europe moved forward on Monday morning, as oil firms, energy prices and corporate earnings increased.
Tuesday, November 11, 2014
Corporate earnings show third quarter advance
Several European companies posted better-than-anticipated third quarter earnings which helped investor sentiment, Bloomberg reported. Denmark’s Carlsberg A/S rose 2.7%, the Netherlands’ Nutreco NV added 15%, while the UK’s Lonmin gained 3.8% to reach its highest mark in seven weeks.
Thirteen out of 18 national benchmark indices in Europe achieved gains on Monday. Nearly 70 companies in the Stoxx Europe 600 will report earnings this week. Analysts forecast 7.5% growth this year.
“We’ve had strong earnings compared with okay macro numbers,” Henrik Drusebjerg, chief strategist at Carnegie Investment Bank AB in Copenhagen, told Bloomberg. “I’m still a moderate optimist. We see a slow but improving world economy, which is strongest in the US, but there are signs of things getting better on a global scale. My main concern is Europe, but then again, [European Central Bank President Mario] Draghi seems headed towards quantitative easing and if necessary, he will do more.”
Items to watch in the week ahead
There will be a flurry of activity this week that could impact investors’ positions on the market, according to The Wall Street Journal. Federal Reserve Bank of Boston President Eric Rosengren will give a lecture at Washington and Lee University Monday evening, during which he may comment on the Fed’s interest rate hike outlook.
Wednesday will see the release of September industrial production data in the Eurozone. Economists hope the market will have recovered from a weak August. Additionally, the Bank of Korea’s Monetary Policy Committee will meet and make a decision on measures to weaken its currency, the won.
On Friday, the Group of 20 summit and finance minister meeting will commence in Brisbane, Australia, while the Eurozone’s October final consumer prices index will be released.
Cap your risk with Nadex
Investors who want to trade on the hottest markets with limited risk should look into trading binary options through Nadex. These short-term, limited-risk, low-collateral contracts allow traders to take a short-term position on a number of markets including indices, forex, commodities and events.
This information has been prepared by Nadex, a trading name of North American Derivatives Exchange, Inc., prepared by independent third parties contracted by Nadex or reproduced form third party news agencies. In addition to the disclaimer below, the material on this page does not contain an offer of, or solicitation for, a transaction in any financial instrument. Nadex 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.