European cash equity markets are mostly lower ahead of the midway stage although losses are relatively modest; retail, healthcare and technology stocks are among the worst performers to start the week while banks are a bright spot (FTSE -0.4%, DAX -0.2%, CAC -0.3%). From a regional perspective, the FTSE 100 has underperformed slightly as Brexit related uncertainty intensified over the weekend. UK lawmakers will debate an amendable Government motion on the Brexit deal later today and put forward their amendments while it is still unclear whether May will bring forward a third meaningful vote. Sterling has declined in response with Gbp/Usd back below $1.32 while moves elsewhere in FX have been relatively modest. The Dollar Index has lost -0.1% to 96.6 while the Swedish Krona and Norwegian Krone are the strongest of the G10’s. Data wise, German IFO readings were broadly stronger-than-expected and helped ease recession fears after Friday’s PMI miss. We did also hear from the ECB’s Hansson who warned the slowdown in the Euro Zone economy may continue in the medium-term. Coeure added that they are not at the limit of what they can do yet on monetary policy. Looking ahead, futures are pointing to a relatively flat open on Wall Street as Trump takes a victory lap following the Mueller report. On the data front, we await the Chicago Fed National Activity Index, Dallas Fed manufacturing index and Belgium business confidence.
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