European cash equity markets are broadly higher ahead of the midway stage with the Euro Stoxx 600 touching a fresh five-month peak (FTSE +0.5%, DAX +1.0%, CAC +0.6%, FTSE MIB +0.6%). Auto stocks are among the best performers, led higher by French equipment firm Faurecia after they unveiled plans to purchase Clarion and launch a business group in Japan. UK advertising giant WPP has also surged higher this morning after full-year earnings surpassed relatively low expectations. Broader risk sentiment remains underpinned by expectations of a US-China trade accord with overnight reports suggesting a final deal is being prepared for Trump and Xi to sign in the coming weeks. Chinese Caixin manufacturing PMI data also surprised to the upside overnight although remains in contraction territory. European data releases have failed to have much of an impact meanwhile with Euro Zone manufacturing PMI revised a touch higher to 49.3 from 49.2 and UK manufacturing PMI inline with expectations at 52.0. Headline Euro Zone CPI also met expectations at +1.5% although the core rate did soften slightly to +1.0% (f/c. +1.1%). In currency space, the Dollar Index is flat at around 96.2 with little reaction shown to comments made by Fed Chair Powell overnight. The Japanese Yen is the weakest among the G10’s while the Swiss Franc and the Pound are also nursing minor losses versus the Greenback. The Canadian Dollar and New Zealand Dollar are the strongest. Elsewhere, oil prices are little changed for the day with US crude futures up around +0.1% while spot gold has lost -0.3%. Looking ahead, futures are pointing to a higher open on Wall Street amid a busy data slate – US personal income/spending, PCE deflator, Markit manufacturing PMI, ISM manufacturing and Michigan Sentiment plus Canadian GDP and PMI.
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