What you need to know before the open
European markets are expected to open flat this morning as poorer than expected results from both Google and IBM offset the well-received dovish comments of Federal Reserve chair Jane Yellen.
Google shares dipped as much as five per cent in after hours trading last night, after it reported revenues for the first quarter of the year of $15.42bn (£9.18bn), about £100m short of what was expected, but higher than the $12.95bn reported in 2013’s first quarter.
Net income increased to $3.45bn from $3.35bn in the same period during 2013.
But investors will be reassured by Yellen's remarks to the Economic Club of New York that the US would "likely require low real interest rates for some time."
The Fed chair said it could take as long as two years for the US to reach full employment and there was still a significant risk of inflation remaining too low.
Corporate data
The world's largest spirit maker Diageo attributed weak sales in the nine months to 31 March on adverse currency movements and uncertain GDP outlook in emerging markets.
Housebuilder Taylor Wimpey has increased its order book volume by 13 per cent to 8,139 and reported the average selling price of homes in the total private order book have risen by 22 per cent to £249,000.
Rating agency Standard & Poor's have increased their outlook on Thomas Cook gorup from stable to positive.
Oil giant Shell has announced a gas find at the 'Rosmari-1' well in offshore Malaysia.
Data in focus
- 1:30pm: US April initial jobless claims