Data was released showing that UK inflation had fallen, from 8.7% in May to 7.9% in June. This is lower than forecasted and shows promise that the inflation battle is starting to be brought back under control. Even the notoriously volatile core inflation was lower, which was again lower than analysts had predicted. Markets rose on the back of the positive news, with the FTSE 100 climbing 1.3% and the FTSE 250 soaring by 3%.
Both Netflix and Tesla are due to report their profits today, amongst a whole host of other major companies on the S&P 500. Many are hoping that the results are positive, as a huge proportion of the gains on the S&P 500 and Nasdaq indexes this year has been owing to a very small percentage of companies, notably including Netflix and Tesla. If the tone of the earnings reports are positive, it might suggest that markets can continue to climb for the second half of the year. The contrary may well send markets into a more troubled phase, as questions are raised about which stocks can continue to maintain growth.
Shares in the UK based cyber security company Darktrace climbed by over 27% yesterday after a report was released by EY clearing them of any dubious accounting techniques. Quintessential Capital Management, a hedge fund based in the US, accused Darktrace of driving the value of their shares up before going public in 2014. Whilst the EY report showed areas of improvement, it seems nothing sinister has been found, much to the relief of many investors.
Sources: IG, AJ Bell, Reuters, Yahoo Finance, Financial Times