Stock markets around the world have been mixed overnight and into this morning. US index futures and the Dax are flat, while the Nikkei rose 0.2%.

The top performing index so far today has been the FTSE which has gained on a number of factors. The Labour Party released its manifesto today, big on tax increases and nationalizations, which doesn't appear likely to win them any friends outside of their hard core base. Meanwhile, UK inflation came in higher than expected indicating a strong UK economy. Somewhat surprisingly, GBP is steady against USD on this news even though it puts more pressure on the Bank of England to tighten after the election.

The FTSE, with its big energy names is also benefiting from continued oil price gains. WTI and Brent are climbing on reports Kuwait and other countries are ready to join Saudi Arabia and Russia in a nine-month extension to production cuts. Reports have suggested a longer extension could get rid of the supply glut. Higher oil is supporting CAD following a rally and could benefit energy stocks in North America today.

Overall, however, US markets appear stuck. Overnight reports that President Trump may have leaked sensitive information to the Russians keep the political pot boiling and distracts the administration away from economic reforms. So far, the street has been taking it all in stride, but with the S&P still struggling around 2400 one has to think at some point this deadlock could break and we could see a significant move.

Speaking of big moves, the Euro has broken out over ‎$1.1000 today. Traders are still responding favourably to Macron's big win in France. With French parliamentary candidate lists now out, traders may be anticipating his support may carry down the ticket and that his agenda could pick up a lot of support in parliament as well. Austria is now looking at elections this fall with the governing coalition collapsing, but this hasn't attracted much attention from traders yet. 

Home Depot could be active today after posting stronger than expected earnings. ‎Gold has picked up a bit today and remains a good barometer of the street's attitude toward political and economic risk. 


Corporate News

There have been no major corporate announcements this morning. 


Economic News

Significant announcements released overnight include:

UK consumer prices        2.7% vs street 2.6% vs previous 2.3%
UK core CPI            2.4% vs street 2.3% vs previous 1.8%
UK retail prices            3.5% vs street 3.4%
UK producer input prices    16.6% vs street 17.0%
UK producer output prices    3.6% vs street 3.4%
UK house prices        4.1% vs street 5.3%

Eurozone trade balance        €23.1B vs street €18.7B

Germany ZEW current        83.9 vs street 82.0
Germany ZEW expectations    35.1 vs street 22.0 vs previous 19.5


Upcoming significant economic announcements include:

8:30 am EDT        US housing starts        street 1,260K
8:30 am EDT        US building permits        street 1,270K

9:15 am EDT        US industrial production        street 0.4%
9:15 am EDT        US manufacturing production    street 0.4% vs previous (0.4%)


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