MARKET ANALYSIS 27/07/2016

Despite gloomy forecast, Apple jumps 6%

Tim Cook is not done yet: Despite analysts’ predictions that Apple’s stock will decrease in value, the tech giant shared its earnings report and shot down all of the naysayers. Apple reported earnings of $1.42 per share, and overall revenues of $42.4 billion. The market reacted strongly and the company’s stock jumped 6%. Apple reported that it shipped more iPhone 6 SEs than expected, which may indicate that it is still very much aware of its customer’s needs, and that the iPhone 7 coming out later this year might be in high demand - so BGC Financial’s downgrade of the stock to “sell” yesterday might have been premature.

The Nikkei climbs after stimulus package announced

Japanese PM Shinzo Abe is giving his economy a boost with a 27 trillion yen (approx $254 billion) stimulus package. As word got out that the announcement is expected the Nikkei climbed more than 2% giving traders in Tokyo something to smile about. While the Nikkei rose, the yen went down, since it was reported that almost half of the stimulus package will be comprised of low-interest loans. The Japanese currency tumbled against most of its 16 major peers, losing 1.2% against the U.S. Dollar. The impact of the stimulus package will influence many of Tokyo’s stocks and benchmarks in both directions in the coming days, so traders should be aware of the various fluctuations.

European markets open higher

Ahead of the U.S. Federal Reserve monetary decision expected later today (18:00 GMT), European markets open on a high note. The London FTSE index is up 14 points, the German DAX up 62 points, and the French CAC up 25 points. According to reports, the Fed is expected to leave interest-rates unchanged, meaning they will remain the same at least until September. The Federal Open Market Committee is set to announce its decisions at 2:00PM ET (6:00PM GMT). Another factor influencing today’s trading day will no-doubt be the earnings reports announced by several major players.