After a volatile first few minutes, European equity markets appear to have fallen into line with the general trend we’ve seen established in North American and Asia by dragging themselves higher. It really does appear however that in the general absence of macroeconomic fundamentals, the market is struggling to find the conviction it needs to make a sustainable move higher and that situation isn’t likely to improve today, either.
Looking back to the Asian markets, it’s been another mixed session for the region – dollar weakness served to add weight to the Yen which again delivered another choppy day for the Nikkei leaving the index 2% lower at the close. Losses were also posted in Shanghai after Chinese GDP expanded at its slowest rate in five years and the perennial line about this driving Chinese stimulus measures failed to deliver any support, either.
This is all pointing for a broadly unchanged start to the session on Wall Street – we have some home sales data due for release shortly after the opening bell, but otherwise it’s going to be earnings season that holds the best potential. McDonalds and Verizon are two of the highlights before the opening bell and right now we’re calling the DOW down 7 at 16393 and the S&P up 2 at 1906.