European cash equity markets are mixed ahead of the midway stage (FTSE +0.6%, DAX -0.1%, CAC +0.1%). Bank stocks are among the best performers, boosted by Deutsche Bank and Commerzbank after the German lenders confirmed over the weekend that they are in merger talks. From a regional perspective, the FTSE 100 is leading its European counterparts as exporters benefit from a weaker currency while the German DAX has been pulled lower by Adidas after a broker downgrade. In fixed, Gilts are ahead and outperforming their German counterparts as UK PM May struggles to find enough support for her Brexit deal ahead of a possible third meaningful vote tomorrow. There was little macro data for investors to work with besides the Euro Zone trade surplus that widened to €17.0 Bln and was largely ignored. Sterling is the weakest among the G10’s in currency space while the Euro and Antipodeans battle for the top spot. The Dollar Index is down -0.1% to 96.4. Oil prices are little changed with US crude futures down -0.1%. Spot gold is up +0.25%. Looking ahead, futures are pointing to a relatively flat open on Wall Street where data releases include the US NAHB housing index and Canadian international security transactions.
For a more detailed report please visit the ‘Market Research’ section.
