Facebook surprises and jumps 13%

Facebook surprised markets and delivered much better than expected when presenting third quarterly results yesterday. The number one social network rose 13 percent helped by strong mobile advertising revenues. 14 percent of its advertising revenue comes from mobile ads. This is a clear indication that Facebook starts to figure out how to earn money of smartphone and tablet users. Mobile ad revenues totaled USD 150 million in the third quarter compared with 50 million in second and nothing in the first quarter of the year.
Apple launched its mini iPad during the last session. The cost would be USD 299 considerably more expansive than the competitors, Google and Amazon, but half the price of its iPad. The presentation failed to impress markets, and the share fell 3 percent. It was a new dismal session at the US stock exchanges. Dow Jones fell 1,82 and Nasdaq 0,82 percent. The markets are somewhat stronger in Asia this morning helped by stronger PMI-results from China in September. The HSBC’s bank Flash Manufacturing Purchasing Managers index (PMI) rose to a three month high in October signaling a strengthening recovery.
The PMI results are seen by investors as a token that the bottom in the short term downward cycle might be reached in China. The Shanghai composite is up, and futures for Europe and US are positive helped by better commodity prices. Copper prices are stronger than in one week. The Australian dollar which has been under pressure earlier this week is trading stronger on the better perspectives for commodities and a recovery in China. Weak quarterly company results and uncertainties regarding the upcoming presidential elections have put the stock markets under pressure during the last days and reduced the appetite for risk. This has strengthened the dollar and put the Euro under new pressure. EURO/USD is trading at 1.2987 pulling back from last week’s high on 1.3140, but well above October month’s low at 1.2804. The President of the European Central Bank (ECB), Mario Draghi is meeting the German Bundestag today in an effort to convince skeptical parliamentarians on the importance of monetary easing.
Oil prices fell anew dollar yesterday. Brent crude has recovered to 108,50. Also gold and silver prices are trading higher in Asia after new steep falls yesterday.
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