Equity markets across Europe are
flying as the final session of the week gets underway, with traders clearly
showing some signs of confidence that there are some bargains to be had at
these levels. All the major regional indices are currently in positive
territory although as always, the question has to be whether this proves to be
sustainable in the longer term. We have some relatively low level data out of
the Eurozone this morning, but given the tentative nature of matters, anything
that serves to draw attention to the flagging economy has the potential to
inject yet more fear into stocks.
It’s been a mixed finish to the week
for Asia with the strong Yen weighing on the Nikkei, whilst the Shanghai
Composite is also under a degree of pressure with reports highlighting limited
liquidity ahead of a raft of new IPOs. The Hang Seng however is pushing higher,
with the fact protestors have been cleared from Hong Kong’s streets in a very
peaceful manner lending some support here.
Looking ahead to the US open,
futures are currently suggesting we’ll see some bumper gains at the bell.
However, given the DOW has ranged almost 1,000 points over the last five
sessions, this volatility needs to be put in a degree of context. In terms of
fundamentals, the Michigan consumer sentiment data could provide some direction
but it really does seem to be trader sentiment that will be calling the shots.
GE, Honeywell and Morgan Stanley are amongst the earnings highlights due before
trade gets underway too, but for now we’re calling the DOW up 133 at 16250 and
the S&P up 16 at 1879.
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