European stock markets are a little lower this morning as the mixed PMI reports from France and Germany prompted traders to take some money off the table.

The DAX and the CAC 40 racked up six month highs yesterday, and now we are seeing a pullback. Traders are mindful of the Easter break and we might see some trimming their positions ahead of the long weekend.     

Unilever announced a 1.6% drop in first-quarter sales to €12.4 billion, which topped analysts’ forecasts expectations of €12.3 billion. The disposal of the spreads business was responsible for the dip in sales. Prices ticked up by 1.9% while volumes edged higher by 1.2%, and that is a little concerning as a company can’t depend on higher price hikes forever. Well established markets like the Americans and Europe posted sales growth of 0.4% and 0.6% respectively, while emerging markets like Asia, Africa, the Middle East and Eastern Europe registered a 6% rise in sales.  

Rentokil shares have reached another all-time high this morning after the group revealed a solid first-quarter update. Revenue for the first three months jumped by 8.9%, but a sizeable portion of that was down to acquisitions, and the organics growth rate was 4%, which was an improvement on the 3.2% achieved in the previous years. 

Moneysupermarket revealed a 19% jump in first-quarter revenue. The home services division reported a 70% jump in revenue and the money department saw revenue increase by 9%.  The price cap in the energy market and the availability of attractive offers to switch providers helped the company. The group maintained its outlook for the year, and it pledged to return £40 million via a special dividend.

EUR/USD is lower on the session in the wake of the mixed PMI reports from Germany. The manufacturing PMI report improved from 44.1 in March to 44.5 in April, but it missed the 45 estimate. The German services report was 55.6, topping the 55.1 forecast.  The French manufacturing and services PMI reports were mixed too.

GBP/USD shrugged off the impressive UK retail sales figures. Last month, UK retail sales jumped by 1.1%, which smashed the -0.3% forecast. The February figure was revised higher from 0.4% to 0.6%. Stockpiling because of Brexit, might be the reason behind the figures, but the reports were impressive nonetheless.

American Express will be in play today as the company will reveal its first-quarter figures today. The firm confirmed that annual profit more than doubled in January, and it issued an optimistic outlook for 2019 as it felt that consumer spending was ‘reasonably strong’.

We are expecting the Dow Jones to open 89 points lower at 26,360 and we are calling the S&P 500 down 8 points at 2,892.

 

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. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

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.