European cash equity markets are broadly higher ahead of the midway stage with the Euro Stoxx 600 touching its best level since early-December (FTSE +0.4%, DAX +1.4%, CAC +1.0%, FTSE MIB +0.8%). Trade sensitive sectors including basic resources and automobiles have outperformed the broader market following on from gains on Wall Street and Asia overnight. From a regional perspective, the FTSE 100 has struggled to keep pace with its French and German counterparts as the impact of a stronger currency weighed. Cable rallied to a fresh eleven-week high overnight amid reports the DUP have agreed to support Theresa May’s ‘Plan B’ Brexit deal. Elsewhere in FX, the Euro has also gained versus the Greenback and moved to the top of the G10 pile despite some negative impulses including weaker-than-expected German IFO – the business climate index dropped to 99.1 (f/c. 100.7) from 101.0. This came alongside the ECB ‘Survey of Professional Forecasters’ which lowered real GDP and HICP estimates for the next few years and over the longer-term. We earlier heard from the ECB’s Villeroy who said they will probably downgrade their growth forecasts in March. Elsewhere, oil prices have edged higher with US crude futures up around +0.2%. Spot gold is up +0.3%. Looking ahead, futures are pointing to a higher open on Wall Street with earnings due from Abbvie and Colgate Palmolive. On the data front, we await US durable goods and new home sales plus Belgium business confidence.
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