European cash equity markets are mixed ahead of the midway stage with moves in either direction on the small side (FTSE +0.1%, DAX 0.0%, CAC +0.3%). Auto related stocks are among the worst performers having turned lower in recent trade amid reports via German press that the US are considering three options for car tariffs including a ten-percent levy. Swedish builder Skanska has also moved sharply lower after their fourth-quarter update where they surprised investors with a proposed dividend cut. Broader risk sentiment has also been dampened by concerns regarding global trade after US President Trump said he had no plans to meet with Chinese President Xi before March 1st – There were hopes that such a meeting would postpone the imposition of additional US tariffs on Chinese goods. In the bond markets, both Bunds and Gilts are hovering relatively close to unchanged for the day with little event risk this morning to dictate otherwise. The German trade surplus did widen slightly in December to €19.4 Bln (f/c. €19.0 Bln) while French industrial production was in line with expectations. Turning to currencies, again moves have been relatively muted with the Dollar Index flat at 96.6. The Australian Dollar has seen some minor underperformance following more dovish RBA rhetoric overnight. Oil prices are mixed meanwhile with US crude futures down -0.3% and Brent up +0.3%. Spot gold has added +0.1%. Looking ahead, futures are pointing to slightly lower open on Wall Street with earnings still to come from Phillips 66 and Goodyear. On the data front, we await US wholesale inventories plus Canadian jobs data and housing starts.
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