US markets to open higher as China slowdown decelerates, Greece closer to deal
Economic data that added to signs China’s economic slowdown is beginning to decelerate as well as a possible deal for Greece are positive for the global growth environment and helping US markets towards a higher open on Tuesday.
HSBC’s China manufacturing flash PMI for June was reported at 49.6, higher than the 49.4 expected. The data still indicates a contraction in China’s manufacturing, but there are signs of improvement as the governments monetary and fiscal stimulus begins to take effect.
European stocks are still reacting favourably to Greece’s latest set of reform proposals that creditors have described as having the first meaningful concessions in months, and this positively is passing through to US equities.
The drop in oil price and low natural gas prices could finally be starting to spur some M&A in America’s energy industry. Energy Transfer Equity made an offer to merge with rival gas pipeline operator Williams Companies worth $53.1bn which was rejected by Williams.
Durable goods orders are expected to rise in May for the first time in three months by 0.5% having declined by -0.2% and -0.4% in April and March respectively. The US consumer is beginning to show signs of a turnaround but these numbers will need to improve for US growth to be sustainable enough for the Fed to normalise interest rates.
Earnings are expected from Blackberry, Carnival and Darden restaurants.
Futures suggest the:
S&P 500 will open 2 points higher at 2,124 with the
Dow Jones expected to open 12 points higher at 18,131 and the
Nasdaq 100 4 points higher at 4,548.
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