AM Analysis – “FTSE 100 futures advancing 35 points overnight” – David White
European equity markets are set to open some 0.5 percent higher, with FTSE 100 futures advancing 35 points overnight. Minutes from the BoJ together with positive sentiment from yesterday’s manufacturing gauge are helping persuade investors that theme of underlying economic strength and liquidity is indeed still here. The S&P also closed out a strong session, again within a hairs breadth of all-time highs.
Here in London, equity market participants will turn to news that RBS intends to cut 30,000 jobs while Rolls Royce wins a US Air Force contract worth $182.7m. Somewhat an important point of confidence for RR, winning a contract shortly after losing 10 percent of its share price will likely help support the price so long as the market hasn’t already moved to anticipate the information. Later today PSNB and retail sales for the UK will be released, followed by US existing home sales.
PM Analysis – “A third consecutive weekly gain” – Lee Mumford
European stocks held onto gains heading into the afternoon, extending a third consecutive weekly gain. The FTSE is trading 10 points higher despite worse than expected UK Retail Sales. January sales failed to entice spending after the pre-Christmas surge, coming in at -1.5% versus -0.9% expected.
US futures are indicating a higher open, helped by Hewlett-Packard which has gained 1.5% in early trading after posting sales and profit that exceeded forecasts. The dollar strengthened against its major rivals following yesterday’s upbeat data, signalling the economy is improving.
A release later today could show that existing house sales in the US fell 4.1 percent in January to an annual pace of 4.67 million according to analysts. The figure will be announced at 15:00 GMT.
[The original articles by Spreadex can be found here.]
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