US markets to open slightly lower, ahead of Chicago PMI
01:00, 30 juni 2014
· Av CMC Markets
It's a shortened week for US traders with the 4th July holiday on Friday, but nonetheless it's expected to end with a little bit of volatility with the release of the June employment report a day early on Thursday.
With US markets continuing to outperform the wider market, today's session is expected to open slightly on the back foot, ahead of a raft of economic announcements this week.
There is also the fact that with Q3 earnings season set to get under way next week there may be a perception that a lot of the good news may well already be priced in, given last week's disappointing Q1 GDP growth downgrade. US investors continue to buy into the narrative that last week's Q1 GDP blip was an aberration and that a strong bounce back is about to get under way.
This week's economic data will either reinforce that narrative or muddy the waters further with more mixed economic data.
The main focus on the calendar today for US markets is the release of the latest Chicago Purchasing manager's survey for June. There may be an expectation of last week's rather decent Markit PMI number of a similar robust survey here, though predictions are for a slight drop to 63 from 65.5 in May.
Pending home sales are expected to rise 1.2% in May, up from 0.4% in April.
The S&P500 is expected to open 2.5 points lower at 1,958.5
Dow Jones is expected to open 18 points lower at 16,834.2
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