Virgin Galactic’s Branson flew to space, but the stock of Virgin Galactic (SPCE) dropped. Why?
European equities keep diving
On Thursday, European equities proceeded with their downward move, affected by dismal earnings updates, a dive in Italian financial institutions on everlasting uncertainty over the outlook for Italy’s finances.
As a matter of fact, STOXX 600 headed south by 0.5%, with most sectors staying in the red after broad-based profits in the previous trading session, which helped the pan-European index to rebound from near two-year minimums.
Moreover, uncertainty over Brexit, Italian politics as well as worries over decelerating economic and also earnings surge have discouraged traders from taking risks because major financial institutions take steps to conclude years of easy monetary policy.
In addition to this, Centrica inched down by 8.7%, leading losers on the STOXX 600 following its trading update. By the way, financial analysts at Jefferies told that even although the company affirmed some its debt as well as dividend objectives for 2018, its earnings per share guidance slumped 10% below consensus.
Rotork appeared to be another big dive in the European bloc, heading south by nearly 7.1%, following a 4% tumble in its order intake.
Aside from that, Telecoms firm Altice went down by 13%. It occurred to the fact that its third quarter core earnings went down by almost 7% because of heavy promotions to win clients.
What’s more, Italian financial institutions FTIT8300 went down by 1.9% because Deputy Prime Minister Matteo Salvini pointed out that the Italian cabinet wouldn’t backtrack on the budget law after a rejection by the EU Commission. By the way, Banco BPM turned out to be the second-biggest diver in Milan, decreasing by 2%.
As for bearish bets on a number of Italian financial institutions, they have headed north for the last weeks, thus reflecting their dim revenue outlook as well as fears over the euro zone's number three economy.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!