The FTSE 100 has started the day by hanging onto the 6700 level and tempered the pace of the markets fall from earlier in the week.
Today’s economic data releases will once again guide the markets with the European Central Bank holding court in Brussels, releasing its monthly bulletin, and the Bank of England confirming its official bank rate and asset purchase facilities. Any chance of a bullish open following the example set by last night’s US markets has been derailed, with the pre-market release of poor Chinese trade balance figures and the almost ubiquitously disappointing French data.
In a change of template from the last couple of days, banks and airlines are no longer the centre of attention. Grumblings of discontent at new CEO Christopher Bailey’s remunerations at Burberry may be somewhat appeased, with the company’s announcement that its first-quarter sales were up by 12% year-on-year, although currency headwinds look set to impact full-year profits. Unsurprisingly, UK house builder Barratt Developments has followed the trend in that sector by confirming its annual profits are expected to come in around £390 million, the top end of the range. Retrospective analysis of the Royal Mail float continues to be a popular pastime, with yet another review into the price set for the company’s IPO being announced.
Self-confidence is seldom in short supply across the Atlantic, and US equity markets ability to ignore the travails of their European counterpart’s shows no sign of slowing following last night’s climb higher. The first week of the reporting season is always a bit stop start, and ahead of Friday's Wells Fargo quarterly figures, and with the majority of the days economic data focused on Europe this could hinder markets momentum. Ahead of the open, we expect the Dow Jones to start 53 points lower at 16,932.
Today’s economic data releases will once again guide the markets with the European Central Bank holding court in Brussels, releasing its monthly bulletin, and the Bank of England confirming its official bank rate and asset purchase facilities. Any chance of a bullish open following the example set by last night’s US markets has been derailed, with the pre-market release of poor Chinese trade balance figures and the almost ubiquitously disappointing French data.
In a change of template from the last couple of days, banks and airlines are no longer the centre of attention. Grumblings of discontent at new CEO Christopher Bailey’s remunerations at Burberry may be somewhat appeased, with the company’s announcement that its first-quarter sales were up by 12% year-on-year, although currency headwinds look set to impact full-year profits. Unsurprisingly, UK house builder Barratt Developments has followed the trend in that sector by confirming its annual profits are expected to come in around £390 million, the top end of the range. Retrospective analysis of the Royal Mail float continues to be a popular pastime, with yet another review into the price set for the company’s IPO being announced.
Self-confidence is seldom in short supply across the Atlantic, and US equity markets ability to ignore the travails of their European counterpart’s shows no sign of slowing following last night’s climb higher. The first week of the reporting season is always a bit stop start, and ahead of Friday's Wells Fargo quarterly figures, and with the majority of the days economic data focused on Europe this could hinder markets momentum. Ahead of the open, we expect the Dow Jones to start 53 points lower at 16,932.
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