European equity markets are slightly in positive territory as investors are engaging in a bit of bargain hunting after the recent declines.  

Vodafone shares are up 4.7% today after the company had an impressive first-six months. Operating profits jumped by 32.5% and profits were trimmed. The company upped its interim dividend by 2.1% and net debt saw a respectable drop of 15%. The figures were robust, but the most impressive thing about the update was the ramping up of the full-year outlook. Previously the company expected to see a 4-8% rise in full-year earnings, and now they anticipate a 10% rise. The stock gapped higher, and hit a level not seen since August. If the bullish sentiment continues, it could target the 2017 high of 233p.

Intermediate Group shares are up 8.2% after finance house posted a 14% increase in assets under management. The company is tapping into the lucrative markets of raising client funds to lend directly to companies. Some banks are cautious when it comes to business lending and that is where Intermediate Group fills the gap in the market. The share price is currently trading at 1005p, and it is eying its all-time high of 1047p.  

GBP/USD slipped this morning after UK inflation held steady at 3%, while economists were expecting it to tick up to 3.1%. Sterling is still vulnerable due to the political uncertainty surrounding Theresa May. If the pound can manage to hang onto the $1.30 mark, its outlook could remain positive.

EUR/USD is higher this morning after Germany revealed respectable growth figures. On an annual basis, the country grew by 2.3% in the third-quarter, and that was a big improvement on last year’s reading of 0.8%. The eurozone grew by 2.5% in the third-quarter, up from 2.2% a year ago.

There are a number of central bankers speaking in Frankfurt this morning. We will hear form Mario Darghi of the European Central Bank, Mark Carney of the Bank of England, Haruhiko Kuroda of the Bank of Japan, and Janet Yellen of the Federal Reserve. 

We are expecting the Dow Jones to open unchanged at 23,439, and we are calling the S&P 500 down 3 point at 2581.

At 1.30pm (UK time) the US will announce the producer prices index (PPI) for October, and on an annual basis the reading is expected to come in at 2.4%, down from 2.6% in the previous report.

Home Depot will announce their third-quarter results today.  

 

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