UK assets take centre stage after UK Prime Minister Theresa May called a snap election for the 8th of June. Yesterday, after the surprise announcement, sterling climbed to a 6-month high, now trading at $1.28. That’s a 2.7% increase for Cable. The stronger pound sent the FTSE 100 lower. The index is at £7070 this morning, after slumping 2.5% on Tuesday.
Hopes that May can secure a majority are rife. If the Prime Minister succeeds in the election she will have much more leverage to negotiate Brexit conditions, with much less resilience from Parliament.
Market Watchlist
Earnings season continues today with Morgan Stanley (NYSE:MS) and American Express (NYSE:AXP). Yesterday, Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) released their earnings reports. Goldman Sachs’ disappointing results spurred bearish tones across financial stocks, dragging down the Dow Jones by 100 points in yesterday’s US trading session.
Today, at the US opening bell, caution should prevail. If today’s earning reports miss expectations, investor angst should increase further, igniting more bearish bets.
For now, at least, equities are tipping upwards, if only slightly.
- CAC 40 is up 0.26% at €4933.50
- DAX 30 up 0.33% at €12056.50
- FTSE MIB up 1.13% at €19230
- S&P 500 up 0.2% at $2343.50
- DJ 30 up 0.15% at $20457
- Nasdaq 100 up 0.2% at $5402.25
Commodity Corner
Gold has decreased by 0.5% today, now at $1282.27. The precious metal has pared some of the gains it made earlier in the weak thanks to a decrease in perceived risk in the market.
After a bearish morning for crude oil, the commodity is now making some gains. Up 0.18% at $52.86, the commodity’s volatility is returning.
News Today
14:30 GMT Crude Oil Inventories