European markets are gaining ground in early trade, with a declining jobless claims figure paving the way for the April jobs report. IAG earnings bring greater focus on airlines ahead of the government announcement on which countries have made the green list.
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Europe follow US markets higher ahead of jobs report.
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Airlines in focus, with IAG losses narrowing ahead of green list announcement.
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Local elections see Labour continue to struggle.
European markets are looking to close out the week in positive fashion, with the FTSE 100 overcoming the 7100 mark for the first time in 14 months. US markets helped lay the ground for today’s European gains, with a welcome decline in jobless claims helping to lift spirits ahead of today’s jobs report. Doubts over whether last month’s payrolls figure of 916k was merely a temporary response to Joe Biden’s $1.9 trillion stimulus package will be answered today, with markets looking for another lofty number. Rising ADP payrolls and continued declines in the jobless claims figure does provide the basis for a possible push towards the one-million mark for today’s NFP number.
The airlines are in focus today, ahead of a government announcement on exactly which countries will make up the so-called ‘green’ list. IAG earnings highlight how the sector has managed to stem some of their losses as they wait patiently for non-essential travel to resume. While airlines are on the cusp of reopening, there is a real possibility that the green list is formed of just a handful of names. Thus with greater restrictions in place for amber countries, there are still questions over just how willing UK travellers would be to undergo greater testing and a quarantine period to visit their favourite holiday spot.
Local elections were never likely to provide the basis for a meaningful move in markets, but it did provide the basis for a stable outlook as the conservatives managed to build on the recent vaccine successes. Victory in traditional Labour strongholds such as Hartlepool highlight how hopes that Kier Starmer would reverse the decline overseen by Jeremy Corbyn may prove ill-founded. However, the strength of Conservative support also likely provides a reflection of public opinion towards Boris Johnson’s Brexit approach, with the pandemic largely shielding any negative impact the break would have had upon the economy. Nonetheless, while the local elections appear to have released some of the pressure off Boris Johnson, the impending Scottish vote could bring another concern given the implications it could have for another independence referendum.
Ahead of the open we expect the Dow Jones to open 22 points higher, at 34,571.
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