Earnings Reports Hitting Heavy
During the first quarter of 2018 growth in Europe sank to its lowest level in 18 months. While Gross Domestic Product (GDP) gained 0.4% in the quarter this is a 42.85% decline over the 0.7% growth experienced over the first quarter last year. Several problems plagued the Eurozone including severe winter weather and general strikes dragged the economy down. Yesterday was a bleak day on the Euroland economic calendar with negative Swiss retail sales and a serious decline in Swiss consumer confidence. Italian manufacturing was weak along with its unemployment. As of press time we are waiting on the EU economic forecasts for CPI and PPI and the British service PMI. Despite the grim economic reports, financiers and economist we have surveyed are of the opinion that things will improve in the 2nd quarter and lend strength to the Euro.
Gilead Sciences Down
In what was generally considered a negative earnings report release the firm tried to dust off the negative news with some non GAAP future and past angles but there is no denying that the price of the stock has been steadily falling since 2015. Gilead makes its living fighting HIV. By most measure the product are well accepted and established in the market, but the firm consistently misses its targets and has fallen form a high on 2015 of 123 to today’s price of 66.
The German Stock Index continues its ascendant ways. Buyers continue to drive the price of the index up. Yes it does so with the support of fellow indices the CAC and the FTSE but we prefer the DAX as it is the most consistent of the main EU stock market indices.
Aussie Building Approvals Up
This morning saw positive Australian economic data showing a big increase in building approvals 160% above expectation and a positive trade balance result as well. The Aussie gains nicely against the Loony today and so we enter today’s pair trade at or above .9666.