Our analysts have their fingers on the pulse of the world's financial market news.
Trading in Asia was mixed overnight, despite Wall Street
Netflix reported after the bell, surging over 6% in after hours trading after revealing that subscribers hit 125 million, well above analysts’ estimates as the firm sees the benefits of its aggressive international expansion. Expectations were high going into the release, but Netflix has not stumbled where some other tech firms have, amid increased regulatory concerns and the stock is up 60% over the past year.
Chinese GDP 6.8%
China’s economy grew by an impressive 6.8% in the first quarter, significantly above the governments’ target and despite fears that growth was going to slow significantly. The market response has not been particularly euphoric, which we expect is due to the significant headwinds faced by the Chinese economy for the coming year; a potential trade war with the US and government efforts to restrain excessive debt and property prices. Metal prices are cautiously higher following the release, so we expect a solid start for miners on the FTSE at the open
Russian cyber attacks
Europe is taking the lead from the US, with European bourses pointing to a stronger start on the open, as investors take
GBP/USD to $1.45?
Overnight the pound struck $1.435, its highest level since the Brexit referendum in anticipation of a more hawkish BoE at the next MPC meeting in May. Traders are looking optimistically towards today's UK jobs data, with expectations that it will support a Spring rate rise by the central bank. Whilst UK unemployment is forecast to remain constant at 4.3%, average earnings are forecast to hit 3% in the three months to February. Given that inflation was 2.7% in February we could start to finally see the pressure of falling wages in real terms ease for the UK consumer. A strong reading could pile the pressure on the BoE to hike rates as good inflationary pressures pick up, potentially pushing GBP/USD to $1.45.
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