US markets look set to open a touch higher today following a fresh all-time high in the S&P 500 yesterday and with some specific plans announced for infrastructure spending on railways by China. Futures suggest the S&P500 will open 0.2 points higher at 1,891.10 with the Dow Jones expected to open 10 points higher 16,583. European markets had an early set back from the release of low services PMI numbers, notably Italy which saw the country drop back into contraction territory with a reading of 49.5 and the UK with 57.6 showing expansion but continuing the decline seen over the past 4 months. The FTSE and Dax were lower on the news but bounced back to opening levels as markets anticipate today’s ECB rate decision. Having successfully broken above the March highs, the S&P 500 will now be eyeing up the big figure 1,900 while the Dow is looking to make its first all-time high for 2014. It may be today’s ISM non-manufacturing that can push stocks higher with an expected reading of 53.5. A key factor in the report will be the employment component which remained solid in the Tuesday’s manufacturing ISM. A good number in the services report to could point towards a good NFP number tomorrow. Giving us a bit more data on what we could expect for Friday’s non-farm payrolls unemployment report are this week’s unemployment claims, expected to show 319k people filed for unemployment insurance after a surprise dip last week to 311k. Overall in tomorrow’s report, the removal of the cold weather effect should push hiring back towards levels seen before the winter. Anything above last month’s result of 175k will probably be well received by markets. Even below 175k the downside should be limited as the Fed’s refashioned ultra-dovish Chair will keep Fed policy easy for longer. Amazon will be in play today, having released its new TV streaming hardware. The device is likely to be neither game-changing, nor a complete failure for Amazon as the company gradually increases its presence in different markets to create customer loyalty across difference areas of content and consumption. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
US markets set to open higher with ECB and ISM ahead
12:00, 03 April 2014