European cash equity markets are mixed ahead of the midway stage with moves in either direction on the small side (FTSE +0.3%, DAX -0.1%, CAC -0.1%, FTSE MIB 0.0%). The perceived safe-haven sectors have seen minor outperformance this morning while auto related stocks are among the worst performers. We also saw heavy losses for ABN Amro and ING after allegations the two lenders were involved in a money laundering operation. In fixed, both core European bonds and Treasuries are in the red with Bunds touching the lows of the day not long after Euro Zone service PMI’s were revised higher from the flash readings. Euro Zone retail sales were also a touch stronger-than-expected while UK service PMI improved. The aforementioned data did send Sterling to session highs although gains proved short lived with Gbp/Usd now lower for the day. Elsewhere in FX, the Dollar Index has gained +0.1% to 96.8 while the New Zealand Dollar and Canadian Dollar are the weakest among the G10’s. Elsewhere, oil prices are little changed for the day with US crude futures down around -0.1% while spot gold is also down -0.1%. Looking ahead, futures are pointing to a relatively flat open on Wall Street with earnings still to come from Target and Kohl’s. On the data front, we await US Markit service PMI, ISM non-manufacturing and new home sales plus possible comments from Fed Presidents Rosengren, Kashkari and Bank of England Governor Carney.
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