Alcoa's earnings miss estimates amid aluminium slump

Thursday, July 09, 2015

Alcoa reported Q2 earning results that missed analysts' expectations. Net income fell to 10 cents/per share from 12 cents/per share a year earlier. The disappointing earnings results might be due to the sharp price declines of aluminium which has retreated recently due to surging exports from China.  

Aluminium 3M

 LMAHDS03 Comdty (LME ALUMINUM  3 2015-07-09 09-22-36

The New York Stock Exchange remained closed for 3 1/2 hour yesterday due to a computer malfunction. The Dow Jones index ended the session over 250 points lower (-1.47%) and the S&P 500 and Nasdaq indices remained in negative territory. European equity markets opened higher this morning as the CAC, DAX, IBEX and London equity benchmark indices gained between 0.55% and 0.9% in early trade. The euro hovered around 1.1050 against the USD.  

Asian equity markets rebounded overnight, recovering part of the recent heavy losses. The Hang Seng index gained over 900 points (+3.73%) towards 24,400 while the Shanghai Composite index surged 5.75% to close at 3,709. Chinese equity markets have been very volatile this week, while inventors remain cautious over a possible slowdown of the Chinese economic growth.

Today, the main focus will turn to the release of US weekly jobless claims as well as the Bank of England’s rate decision. In the UK, the RICS house price balance increased 40% in June, beating estimates of 36%. Germany’s exports rose 1.7% m/m in May beating analysts’ expectations of a 0.8% drop.

EURUSD

EURUSD Curncy (EUR-USD X-RATE)   2015-07-09 09-23-56

 

Events for today:

0001

UK

Jun

RICS House Prices

0230

CN

Jun

CPI & PPI

0700

DE

May

Trade Balance

1200

UK

Jul

BoE Rate

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

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