The Day Ahead
0900hrs UK EU EuroZone Services PMI (est 53.9 vs previous 53.9)
0900hrs UK EU EuroZone Composite PMI (est 54.1 vs previous 54.1)
0930hrs UK UK Services PMI (est 53.02 vs previous 52.8)
0930hrs UK UK Composite PMI (est 53.38 vs previous 53.2)
1000hrs UK EU EuroZone Retail Sales (est 0.51%mom / 1.77%yoy vs previous 0.1% / 0.8%)
1030hrs UK EU The ECB’s Ewald Nowotny speaks at Slovak Central Bank Conference
1100hrs UK UK Bank of England’s Jon Cunliffe speaks at Futures Industry Association Expo in London
1445hrs UK US Services PMI (est 55.72 vs previous 55.7)
1500hrs UK US ISM Non-Manufacturing Index (est 57.7 vs previous 56.8)
1830hrs UK EU The ECB’s Jens Weidmann speaks in Brussels
From the US we have earnings from Ambarella
HEADLINE NEWS: SOCGEN TO PAY US AUTHORITIES $860MLN SETTLEMENT FOR INTEREST RATE MANIPULATION AND BRIBES TO LIBYAN OFFICIALS
UK GOVERNEMNT STARTS SALE OF ROYAL BANK OF SCOTLAND SHARES WITH BOOKBUILD OF 7.7% OF SHARES
The Day So Far….
STOCKS: Wall Street’s leading indices rose yesterday, led by Technology names as the Nasdaq100 pushed on 59.645 points to close at 7143.57, within 0.6% of the all time high set in March. Shares in Apple hit an all time high as investors look for news from the developers conference (market cap now $942.87bln!!) whilst news of a Microsoft acquisition pushed their share price forwards, helping the S&P Tech Index post a record high. Optimism from the upbeat employment numbers from Friday continued as traders looked away from fears of trade wars. The Dow forged ahead with gains of 178.48 points, closing at 24813.69, but still well shy of the highs from the end of January. The S&P500 closed 12.25 points higher at 2746.87, but also still well short of the peaks from January. Small caps continue their good fortune with the Russell 2000 closing just a couple of points below the all time high set in the morning.
Asia-Pacific stocks have operated in mixed fashion, struggling for clear direction in Tuesday's session with questions over US trade policy nullifying the optimism surrounding the economic health of the US. The Nikkei 225 lodged marginal gains as the telecoms sector led support, while the energy sector weighed. The Hang Seng & Shanghai Composite opened softly and operated around neutral levels over the early session, before moving positive in the post lunch session, while Australia's ASX 200 underperformed, falling 30 points with BHP Billiton contributing the most to the fall. There was little reaction to the RBA keeping rates on hold at 1.5%. US index futures have posted marginal losses, with Mini S&P 1 point lower, and Mini Dows 10 points in the red.
US TREASURYS: US Tsy trade has been extremely muted thus far, with T-Notes operating in a 3-tick range. The cash space has seen yields tick ever so slightly lower, but moves have been limited. - It is going to be a case of watching for headlines with prosaic US data releases due through the week & the Fed in the blackout period ahead of the Jun 13 FOMC MonPol decision. - The Eurodollar strip is virtually unchanged.
OIL: The major oil benchmarks managed to record marginal gains with questions over the OPEC+ output agreement and worries over Venezuelan supply dominating the headlines. West Texas futures trading 31c higher at $65.05 and Brent futures up 23c at $75.52
GOLD: The yellow metal stuck to a tight $2 range sub-$1300/oz, with front month futures trading between $1290 and $1292 on low volumes
FOREX: Softer than exp. GDP partials weighed on AUD, as AUDUSD registered session lows of 0.7630, with support coming in the form of the 55-DMA at 0.7616. AUDUSD last at 0.7637. NZDUSD moved to session lows of 0.7026 after the NZ Tsy's monthly economic indicators suggested that NZ's Q1 growth may miss the levels forecast in the budget, although the Tsy did suggest that economic growth will pick up later in 2018. NZDUSD's range remains tight, last 0.7030. - USDJPY staged a test of 110.00 in early dealing, but failed; the level is expected to provide key resistance ahead of the 110.21 200-DMA.
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For information on contact Elio Manca
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