AM Analysis
US markets closed near new highs last night
US markets closed near new highs last night as health-care shares rallied on a smaller than forecast cut in Medicare rates. The S&P ended the day 1 point below record closing highs, hitting a record intraday high. Health-care stocks such as Humana Inc and UnitedHealth Group received the biggest percentage gain with Humana jumping more than 10.6 percent.
Although economic data hasn’t been as good as you would expect, the harsh weather has been blamed with investors hopeful the economy’s recovery is still on track. The Conference Board (CB Consumer Confidence) will announce latest household confidence levels at 15:00 GMT today to give investors an idea of how consumers are feeling. Confidence is a leading indicator of consumer spending and could have a direct impact on retail stocks.
The FTSE is indicating a cautious open with futures indicating an 8 point lower open. Despite the recent overnight rally, European investors seem less enthused by the price action in the US. Headline currencies remained little changed whilst crude trades slightly lower after being pushed towards the top of their trading ranges recently.
– Lee Mumford
PM Analysis
European equities rallying hard into the close
European equities have once again performed their afternoon magic trick; rallying hard into the close from what was looking like a dismal day. This theme of risk off in the morning to risk on at some point during the afternoon, normally after the US open, is becoming established. Participants are wary of valuations and are quick to hit sell at any sign of weakness. But this hasn’t been enough to halt net inflows later in the session. A weak start followed by a strong finish is normally a good sign for the equity market.
The FTSE 100 closed out the day at 6830.5, down 35 points, and the Dow is currently unchanged. Gold is once again trading higher, now selling for $1,343 for April delivery. The dollar is marginally weaker against major pairings.
– David White
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