market relief

Equity markets in Europe are higher this morning as the positive finish in Asia overnight has lifted sentiment. 

Stock markets are still shrugging off President Trump’s tariffs for the time, but sentiment could change when they actually come into effect later this month. The US non-farm payrolls report had some positive aspects to it, but it wasn’t impressive enough to make traders worry that the Federal Reserve would speed up its hiking cycle.

GKN share are higher this morning after Melrose upped its offer for the company. Melrose, the turnaround specialist, has increased its offer to 467p and GKN shareholders would own 60% of the new company. GKN maintains that the revised offer still undervalues the company. The share price is up 0.14% and is trading at 435p.

Deutsche Bank have cut their rating on Just Eat from hold to sell, and they have trimmed the price target to 630p, from 830p. The change in rating comes after last week’s announcement by Just Eat that investment spending will be increased, and the forecast wasn’t as bullish as analysts had hoped. The share price is down 4.4% at 754p.

The US dollar is under pressure this morning as Friday’s non-farm payrolls report still resonates with traders. The headline figure was impressive, but the remainder of the report took the shine off the headline number. In light of the softer-than-expected wage growth figures, traders are starting to question if there willbe four rate hikes from the Federal Reserve this year. We are not expecting any major economic announcements from the UK or eurozone today so we might see low volatility in the GBP/USD or EUR/USD.

We are expecting the Dow Jones to open up 85 points at 24,420 and we are calling the S&P 500 up 7 points at 2693.

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