European indices have returned from the May Day holiday weekend with a big catchup rally that has seen the Dax gain 2.0% to start the week. Much of this is a catchup rally after US stocks advanced on Friday, but better than expected manufacturing PMI figures from across the continent have also been helping. US indices are also moving up today but at a more moderate pace as they build on Friday’s gains. We could see some broad activity around US factory orders later this morning but overall, US traders appear to be focused on Wednesday’s ADP payrolls and Friday’s nonfarm payrolls. Those of you who ready my Royal Baby preview a few weeks back may recall that I noted the markets have tended to rally in the days following a royal birth. With Prince William and Kate Middleton Dutchess of Cambridge’s daughter having arrived over the weekend. It comes as no surprise that markets are climbing today. The FTSE is closed for a holiday but could climb tomorrow in reaction, but as the week progresses, it’s possible that uncertainty over the election results may also have big influence on UK trading this week. In currency action, CAD and NOK have been among the top performers today with crude oil on the rise once again. SEK also continues to benefit from the Riksbank’s decision last week not to cut interest rates even deeper into the negative. Street chatter overnight has been more of the same themes. There was no deal for Greece over the weekend but the government is still hoping to reach one in may, while at the same time noting that the liquidity crisis isn’t helping reform measures to work. Meanwhile there has been more speculation that China’s GDP growth may have fallen under 7% which could push the PBOC into more rate cuts. Nothing new here, but traders should remember that surprises in these areas could pop up any time. It has been a lighter day for earnings with the focus now moving to smaller companies, but McDonalds could be active today after the company announced a significant realignment of its businesses. Corporate News McDonalds to reorganize company into four segments, increase the percentage of franchises to 90% from 81% by the end of 2018 Comcast $0.79 vs street $0.74 Ensign Energy Services $0.18 vs street $0.12, revenue $449M vs street $460M Economic News Economic reports released overnight and this morning include: Manufacturing PMI Reports: China HSBC 48.9 vs previous 49.6 Germany 52.1 vs street 51.9 France 48.0 vs street 48.4 Spain 54.2 vs street 54.7 Italy 53.8 vs street 53.5 Norway 50.5 vs previous 48.6 Sweden 55.7 vs street 54.0 Eurozone 52.0 vs street 51.9 Other significant announcements: There have been no other significant announcements today. Economic reports due later today include: 10:00 am EDT US factory orders street 2.0%