European stocks markets haven’t moved much from yesterday’s close. Volatility is low as Europe followed on from Asia’s relatively quiet session.
Traders are getting to grips with a much stronger euro and the strength of the single currency today has prevented traders from swooping in and picking up bargains in Continental Europe. The eurozone equity markets will find it difficult to attract new buyers as traders feel the European Central Bank is going to rein in its loose monetary policy as we approach the back end of the year. The prospect a reduction in the monthly bond buying scheme will shake-out the speculators who are long, and the strength of the euro will compound the problem.
Beazley reported a 6% rise in first-half pre-tax profits, and net investment income increased by 26% compared with last year. The company’s dividend rose fractionally. The firm’s figures were perfectly fine but the outlook wasn’t too optimistic as the CEO stated the current environment was ‘not conducive to growth’. The share price hit a record high this morning, and given the solid uptrend the stock has been in for over five years the outlook will remain bullish.
UK public sector net borrowing in June rose to £6.85 billion from £6.71 billion in May, and traders were expecting it to fall to £4.8 billion. The GBP/USD reaction to the numbers was muted, and sterling is still struggling to move back above the $1.30 mark.
We are anticipating the Dow Jones to open 20 points higher at 21,631, and we are calling the S&P 500 up 3 point at 2476.
Honeywell international and Schlumberger will report their second-quarter figures today.
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