European cash equity markets are broadly higher ahead of the midway stage with the Euro Stoxx 600 touching a fresh session peak in recent trade (FTSE +0.3%, DAX +0.3%, CAC +0.7%, FTSE MIB +0.5%). Oil related stocks are among the best performers this morning, tracking gains in the oil markets with US crude futures up around one-percent at the highs. From a regional perspective, the French CAC 40 is leading as Airbus shares jumped over two-percent on news of a $35 Bln deal with China. Core European and US government bond yields have also gained this morning as risk sentiment improved globally although investors remain tentative, not least in relation to Brexit. UK lawmakers voted late last night to take control of the Brexit process and will hold a series of indicative votes in a bid to identify a majority in the House of Commons. More recently, Conservative lawmaker and ERG member Jacob Rees Mogg signalled that he may support May’s deal in a third meaningful vote as the only other option is no Brexit. This saw Sterling rise to new highs and the top of the G10 pile while the Australian Dollar is not far behind. The Japanese Yen and Swiss Franc are the weakest meanwhile as perceived safe-haven assets struggle. Spot gold is down -0.5%. On the data front, German GFK consumer confidence was soft at 10.4 (f/c. 10.8) while French Q4 GDP was confirmed at +0.3% QoQ. We also heard from the ECB’s Rehn who said the slowdown in the Euro Zone seems more durable than the short-term. He also added that the Governing Council does not want to raise rates prematurely. Looking ahead, futures are pointing to a higher open on Wall Street while data releases include US housing starts, building permits, house prices and consumer confidence.
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