Norton Global Asset Management Ponder Effects of Chinas Perceived Fragility

Alexandra, Singapore, July 29, 2015 (Newswire.com) - Meanwhile, equity markets in the UK and US once again found themselves under heavy pressure, and disadvantaged by unsatisfactory company earnings and tumbling commodity prices. Superior results from Google and Amazon and UBS and other large companies were not enough to slow down the slide in sentiment that Apple’s figures had caused last week, which goes to show that one company’s results can’t hold up the rest. According to Thomson Reuters, of the US companies in the S&P 500 that have so far reported quarterly results, 74% have beaten analysts’ profit expectations. Across the Atlantic into Europe, the corresponding figure is at 45% for companies that are in the STOXX Europe 600 Index.

Norton Global Asset Management expects the season for UK earnings to start with intent this week, with results due from major players like Centrica, BP, Barclays and Shell. Tuesday, the Office for National Statistics is widely predicted to declare a return to strong growth for the UK economy. Meanwhile – second-quarter figures are expected to show GDP growth of 0.7%, after growth of 0.4% in the first quarter. These figures will doubtless give fuel to speculation over interest rate rises, in spite of comments made last Friday from the Monetary Policy Committee indicating that it was far too early to make hasty rate changes. Norton Global Asset Management believes there will be no need for interest rates as the economy is still recovering from prior damage and the problematic Greece and China still posing a threat to the worldwide economy.

• Discouraging corporate earnings on both sides of the Atlantic add to global growth worries
   
• Primary commodity prices fell to a six-year lows as mining stocks suffer the effects of slowing demand from China and emerging markets across the globe.
   
• Apple’s shares, the world’s largest company, took a sharp drop even after releasing record-breaking results.