Equity traders are cautiously optimistic in Europe as markets finished in the red in Asia overnight.
Sentiment among China’s steel and sales managers cooled this month and that prompted a decline in stocks in the Far East. At the back end of the week China will release the manufacturing and non-manufacturing reports and dealers are lowering their expectations.
In London, mining companies like Glencore, Vedanta Resources and Antofagasta are lower on the day over concerns about China’s slowing economy.
Political optimism is picking up in Germany as the Social Democrats in Germany are to meet with Christian Democratic Union later this week, to discuss the possibility of entering into a ‘grand coalition’. The Germany economy has been managing just fine without a functioning government for the past two months, but investors would welcome some political stability.
Aviva shares are up 1.9% as the company is expected to announce a £1 billion share buyback scheme. The stock has been in an upward trend since June 2016, and if it can hold above its 200-week moving average at 492p, it could target 578p – the 2015 high.
EUR/USD is largely flat on the day and volatility could remain low since we are not expecting a major economic indicators from the eurozone today. The possibility of a positive political outcome in Germany and the soft greenback is assisting the single currency.
GBP/USD is creeping higher again and traders are looking forward to the speech from Andy Haldane at 2.30pm (UK time). The UK central banker is known for his hawkish views, and his announcement could keep the pound in its positive trend.
At 3pm (UK time) the US will announce the new home sales figure for October, and traders are expecting a reading of 627,000, down from 667,000 in September.
We are expecting the Dow Jones to open up 3 points at 23,560, and we are calling the S&P 500 up 1 point at 2603.
Thor Industries will announce their first-quarter figures today.
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.