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.
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