AM Analysis
The global rebound continued overnight
The global rebound continued overnight during a positive Asian session after Russian President Vladimir Putin said he sees no immediate need to invade Ukraine. With a receding threat of war between Ukraine and Russian, equities have managed to erase all of Monday’s loses. European markets are signalling a slightly softer open with FTSE 100 futures indicating a 14 points lower open since yesterdays close.
Gold continues to retreat from a four-month high as investors reduce the demand for a protection of wealth and move investments to more risky assets. Gold has rallied over 11 percent this year, rebounding from the biggest loss since 1981.
With tensions between Ukraine and Russia eroding, investors will be keeping a close eye on a string of economic data due later today. Ahead of monthly non-farm employment data realised on Friday, ADP non-farm data today could give investors further clues on the state of the employment market. Over in Europe, with Retail Sales in January showing an encouraging sign, investors will keep a close eye on today’s data to see if it follows suit.
– Lee Mumford
PM Analysis
Global indices are trading slightly down this afternoon
Global indices are trading slightly down this afternoon after yesterday’s significant bounce that clawed back the losses from the sell off on Monday. Profit taking looks to be the main reason for the slightly negative session as investors look to cash in their earnings whilst they can, despite the geopolitical situation in Ukraine easing slightly over the past 24 hours. The 39 point fall in the FTSE 100 hasn’t been helped from disappointing company earnings such as Melrose Industries which has fallen over 8%, leading the fallers of the index.
UK services PMI has come in at an 8-month low at 58.2 that shows activity in the service sector expanded at a slow pace throughout February. Dow Jones futures have fallen after the release of ADP non-farm employment change which came in lower than expected at 139k.
– Sam Fox
Original Post
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