European cash equity markets are broadly higher ahead of the midway stage (FTSE +0.6%, DAX +0.2%, CAC +0.2%, FTSE MIB +0.2%). We have seen notable outperformance in the banking sector, led higher by Deutsche Bank and Commerzbank after merger speculation intensified over the weekend. French engine maker Safran has fallen sharply meanwhile after a Boeing with one their engines crashed on Sunday. From a regional perspective, the FTSE 100 is the top gainer as UK exporters benefit from a weaker pound. Sterling hit a three-week low versus the Greenback overnight at $1.2949 after Downing Street described Brexit talks as “deadlocked”. The UK House of Commons is expected to vote on PM May’s Brexit deal tomorrow and it is expected to be rejected in its current form although there is chatter of possible amendments to garner more support. Elsewhere in FX, the Dollar Index is flat at 97.3 while the Norwegian Krone surged to the top of the pile after stronger-than-expected CPI data. In commodity space, oil prices are ahead with US crude futures up around +0.6% after the Saudi Energy Minister signalled the Kingdom was stick to the output cuts. Spot gold is down -0.3%. Looking ahead, futures are pointing to a relatively flat open on Wall Street while US data releases include retail sales, business inventories and the Conference Board employment trends index.
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