European cash equity markets are broadly higher ahead of the midway stage with the Euro Stoxx 600 touching a fresh five-month peak in recent trade (FTSE +0.8%, DAX +1.0%, CAC +1.1%, FTSE MIB +1.1%). Technology stocks are among the best performers following an after-hours post-earnings rally for US chipmaker Broadcom. Investors have also welcomed positive signals from the US-China trade dispute with latest reports suggesting a possible Trump-Xi meeting in mid-April or later. On the Brexit front, there had been some hope that PM May would be able to tempt ERG and DUP lawmakers to back her deal in a third meaningful vote next week but lawyers have since rejected additional legal advice from Attorney General Cox. There had been suggestions the UK could use the Vienna Convention to pull out of the backstop unilaterally. Sterling has been resilient however with Gbp/Usd little changed for the day at $1.3250. The Antipodeans have seen a mild benefit from the aforementioned US-China trade developments but the Swedish Krona is top of the G10 pile. The Euro showed minimal reaction to Euro Zone CPI data which was unrevised from the flash reading of +1.5% YoY. Looking ahead, futures are pointing to a higher open on Wall Street while data releases due include US empire manufacturing, industrial production, Michigan Sentiment and JOLTS job openings.
For a more detailed report please visit the ‘Market Research’ section.
