Equity markets in Europe are higher this morning as investors look ahead to the Jackson Hole symposium, which starts today. 

The convention for central bankers is the highlight of the week in terms of economic events. All eyes will be on Mario Draghi, the President of the European Central Bank (ECB), as his commentary, could shape trader’s outlook. The ECB have an aggressive stimulus package in place, but they are running out of bonds to buy, and dealers are wondering what creative way Mr Draghi will come up with to keep the policy loose while not snapping up all the government securities that are available to purchase.

Dixons Carphone issued a profit warning today and the share price is off 26% on the back of it. Analysts were forecasting profits to be in the region of £497 million, and now the company stated it expects profits to be between £360 and £440 million. The profit warning is down to changes in how the company sells its software. Adding to the company’s problems, it also warned the British market for mobile phones is ‘more challenging’. The change in EU roaming rules will cost the company in between £10 and £40 million this year. The collapse in the share price today has rattled investors, and since the share price has been in a clear downward trend since late 2015, the outlook for the share price is negative. 

The GBP/USD is a touch lower today as we have seen a general strengthening of the US dollar. The UK announced the second reading of GDP for the second quarter. On a quarter-on-quarter basis it was 0.3% and on a year-on-year basis, it was 1.7%, both meet expectations. The growth didn’t have much of an impact of the pound.

We are anticipating the Dow Jones to open 21 points higher at 21,836, and we are calling the S&P 500 flat at 2444.

At 1.30pm the US will announce the initial jobless claims report, and economists are anticipating an increase to 238,000 from 232,000 last week. The US will reveal the existing home sales report for July at 3pm, and the consensus is for a reading of 5.57 million, and that compares with 5.52 million in June.

CMC Markets is an execution-only service 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.


CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.