Asian markets traded in positive territory overnight, heading for its first advance in five days with Japanese exporters gaining against a weakening yen. Chinese stocks also contributed to gains as the Chinese central bank takes measures to ease the nation’s cash squeeze. The US dollar edged higher overnight against most major rivals ahead of the Federal Reserve’s two-day meeting which starts today.
Financials will remain in the spotlight today after UBS, Deutsche Bank and Barclays reported earnings today. Deutsche Bank unexpectedly reported a fall in profit after they had to fork out legal costs to help defend against interbank lending rigging charges. UBS was somewhat brighter, posting higher net profit and announced plans to buy back assets from the Swedish National Bank. Meanwhile Barclays, whose shares were hit hard yesterday after they announced a £5.8 billion rights issue, posted a 17 percent fall in pre-tax profit during the second quarter. They will offer shareholders one new share for every four owned at 185 pence to help boost its capital strength and meet another £2 billion miss-selling charge.
European futures are indicating a higher open as investors digest a bulk of earning results. WTI crude continued to decline overnight, falling for a third day, before a government report that may show US economic growth slowed in the second quarter.