European equity markets are in positive territory today as the equity benchmarks try and make up some of the ground that was lost over the last month.
Middle of the road economic data combined with some hawkish comments from central bankers has pushed indices lower over the past few weeks.
China announced that consumer price index (CPI) and producer price index (PPI) for June came in 1.5% and 5.5% respectively, and both remained unchanged on the month. The lack of growth prompted traders to dump mining stocks like Rio Tinto, BHP Billiton and Anglo American.
Carillion shares crashed this morning after the company warned its profits would be below previous forecasts. The construction company also announced the departure of its CEO Richard Howson, and that its dividend will be suspended. Non-core assets will be sold off in order to pay down debt as borrowing is running high. A share price slump of this magnitude is very concerning to see, and while the company is leaderless, finding fresh investors will be tricky.
The eurozone sentix investor survey for July came in at 28.3, while traders were expecting 28.4, and the June reading was 28.4. The EUR/USD is a touch lower this morning as the US dollar is still benefitting from the much stronger than expected non-farm payrolls report on Friday.
We are anticipating the Dow Jones to open 20 points higher at 21,434, and we are calling the S&P 500 3 points higher at 2428.
At 8pm, the US will release the monthly net change in consumer credit for May, and the consensus is for $12.7 billion, and would be a sizeable increase from $8.2 billion in April.
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