< Back to Trader Blog Articles

Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called lower this morning.

A negative for the markets – China is stressing the resilience of the world’s second-iggest economy even as analysts forecast the slowest pace of xpansion since 1990 amid government efforts to rein in leverage nd expand the role of markets. Stocks tumbled today on concern anks have tightened property lending and after new-home prices ose in Beijing and Shanghai in January at the slowest pace ince 2012.

Despite the market taking this news as a negative, the Group-of-20 policy makers meeting in Sydney singled out China among emerging nations exhibiting continued solid growth. They also pledged a coordinated push to add the equivalent of $2 trillion to the global economy through faster growth over the next five years.

A postitive for the markets - European Central Bank President Mario Draghi said policy makers are ready to add to stimulus if the outlook for prices deteriorates, though there are currently no signs of deflation in the euro area.

We are expecting growth in China to come in at 7.5% in 2015. Any rate lower than this would trigger a revaluation of our forecasts. However, at this point in time, we see no reason why this rate cannot be achieved.

Stock to watch: HSBC

Increased demand for UK mortgages expected to boost profits at Britain’s biggest bank. HSBC is expected to unveil its highest profits since the onset of the financial crisis on Monday, fuelled by a surge in mortgage lending as the UK’s economic recovery gathers pace.

Pre-tax profits at Britain’s biggest bank will rise 20% to $24.7bn (£14.8bn) from $20.6bn in 2012, according to analysts’ consensus forecasts.

The bank is expected to say its increased share of UK mortgage lending for the year to the end of December 2013– up from 2.5pc in 2007 to 12pc currently – helped profits beat the record $24.2bn it made in 2007, after demand for mortgages increased strongly over 2013.

Companies in Europe reporting results today:


• HSBC (HSBA LN) 9:15am FY

• PostNL (PNL NA) 7:30am, FY

• Kingspan (KSP ID) 8am, FY

• Hiscox (HSX LN) 8am, FY

• Bunzl (BNZL LN) 8am, FY

• Assoc British Foods (ABF LN) 8am, 2Q sales

Good day and happy trading!

The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.

The information provided on this website 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. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.