In London, the FTSE 100 has exceeded the 7500 hurdle, a level it has struggled to make any serious ground beyond. It is fair to say that the fear associated with President Trump is waning, and traders are slowly but surely buying back into global stock markets. In the UK, Babcock International, easyJet, and Associated British Foods are some of the best performers this morning, as all of those stocks benefited from positive broker ratings.
The DAX and the CAC are trading higher this morning after both countries revealed impressive flash services and manufacturing PMI figures. The eurozone as a whole also reported figures which painted a positive picture of its services and manufacturing sector. The standout figures today, were the manufacturing figures from Germany, which came in at 59.4, up from 58.2 in April, and well above the expectation of 58.
The GBP/USD has dipped back below the $1.30 mark, and the rise in UK public sector net borrowing from £2.3 billion in March to £9.6 billion in April won’t help the pound push higher.
We are expecting the Dow Jones to open at 20,940, up 46 points, and we are anticipating the S&P 500 to open at 2397, up 3 points. Later today, traders will be keeping an eye on US flash manufacturing and services PMI reports, which will be announced at 2.45pm. Also, new home sales and the Richmond manufacturing index will be released at 3pm. Fed members Neel Kashkari and Patrick Harker are speaking at 8pm and 10pm respectively. In terms of corporate reporting, we are expecting quarterly figures from AutoZone, Inuit and Take-Two Interactive Software.
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