European equities have fallen again as the weakness in oil is weighing on investor confidence.

Oil has fallen back to levels not seen since mid-November 2016, and traders are worried it could bring about low inflation and diminished growth.

In London, the FTSE 100 is down 0.5% and commodity related companies are the biggest fallers.

BP and Royal Dutch Shell are in the red on the back of falling oil prices. While mining companies like Glencore, Anglo American and BHP Billiton are lower again as dealers are concerned about declining demand for commodities from Asia.

The GBP/USD has given back some of the gains it made yesterday on the back of Andy Haldane’s hawkish comments. Mr Haldane, a member of the Bank of England, suggested the UK could be ready for an interest-rate hike towards the end of the year. The lack of political certainty from the UK is still hanging over the pound.

UK CBI industrial orders expectations for June will be reported at 11am, and dealers are expecting a reading of 7, which would be a fall from the May figure of 9.

We are anticipating the Dow Jones to open 10 points lower at 21,400, and we are calling the S&P 500 3 points lower at 2432.

At 1.30pm, the US will announces the initial jobless claims report, and the consensus is for 240,000, compared with last week’s reading of 237,000. US house price figures for April will be posted at 2pm, and the market is expecting a rise of 0.4%, while March saw an increase of 0.6%. Jerome Powell of the Federal Reserve is speaking in Washington DC at 3pm (all UK time).

Barnes & Noble and Chemring post their quarterly figures later today.


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