Stock markets in Europe are in the red today as the sell-off in equities goes global.
The declines in New York last night were matched in Asia overnight and now the negative sentiment is creeping into this part of the world. In London, it is a fairly broad based sell-off as financials, natural resource and consumer stocks are all lower on the day.
Domino’s Pizza stated that fourth-quarter sales at its UK & Ireland division jumped by 10%, and the international business saw a jump in revenue of 23%. Consumers have been cautious about spending, and Domino’s have benefitted from this as staying in has become more popular recently. The share price hit an elven month high today, and if the positive moves continues it could target 400p.
Credit Suisse cuts its price target for Reckitt Benckiser to 7500p from 7700p, and she share price is up 0.9% at 6850p on the back of it. The stock has been in decline since June, and if the price drops below 63001p – the 2017 low, it could target 6000p.
GBP/USD is now is positive territory as the pound started to make a recovery from the yesterday’s loss. The push higher in sterling was helped along by the jump in UK consumer and mortgage lending, although the number of mortgage approvals fell.
EUR/USD was already bouncing back when eurozone growth ticked up. In the final quarter of last year, the currency bloc grew by 2.6%, up from 2.5% in the year previous. Traders shrugged off the news that eurozone economic sentient slipped to 114.7 from 116.
At 3pm (UK time) the US Conference Board consumer sentiment survey will be released and traders are expecting a reading of 123.1, up from 122.1 in December.
We are expecting the Dow Jones to open down 157 points at 26,282, and we are calling the S&P 500 down 11 points at 2842.
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