European equity markets are driving higher this morning as the investor sentiment around the globe is running high.
Traders will be waiting for the non-farm payrolls report from the US at lunchtime.
Johnson Services issued a positive trading statement and it expects its full-year performance to be slightly ahead of the previous forecast. The company is continuing on the acquisition trail as it has bought out the StarCounty hotel for £3.9 million. The share price has been in a strong upward trend since 2012, and if the positive trend continues it could target 160p.
EUR/USD is weaker today as the greenback is firm ahead of the non-farm payrolls report. The stellar retail sales from Germany boosted the single currency temporarily, but the strength of the US dollar took over. Germany boosted retail sales of 4.4%, which smashed the expectations of 2.5%. The largest country is the eurozone is firing on all cylinders. Eurozone CPI rate fell to 1.4%, from 1.5% meeting expectations.
GBP/USD is slightly lower on the session as trader book their profits. The pound has had a positive run versus the US dollar recently, and seeing as it has been in a upward trend for over none months, it is likely to continue.
At 1.30pm (UK time) the US will announce the non-farm payrolls report, and the consensus is for 190,000 jobs to have been added in December, which could be a decline from the 228,000 that were added in November. Economists are expecting the unemployment rate to remain at 4.1%. Average earnings are tipped to hold steady at 2.5%, on an annual basis.
We are expecting the Dow Jones to open up 63 points at 25,138, and we are calling the S&P 500 up 6 points at 2730.
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