European cash equity markets are broadly higher ahead of the midway stage (FTSE +1.4%, DAX +0.1%, CAC +0.6%, FTSE MIB +0.1%). The so-called defensive sectors have outperformed the broader market as investors look ahead to key risk events this week. Technology stocks have lagged meanwhile, dragged lower by Germany’s SAP after they confirmed restructuring charges would take effect in the first quarter. From a regional perspective, the FTSE 100 is out in front as British American Tobacco and Unilever shares rose sharply. In fixed, UK Gilts opened with a modest bid but have since slipped into the red while German Bunds are closer to the flat line. Data impulses have been limited – French consumer confidence rose to 91 (f/c. 88) from 86 while Spanish Q4 unemployment edged down to 14.45% from 14.55%. Turning to currencies, moves have been muted so far this morning with the New Zealand Dollar at the top of the G10 pile. The Dollar Index has lost -0.1% to 95.7 as Eur/Usd and Gbp/Usd eke out small gains. It could prove a busy afternoon for the pound with UK lawmakers set to vote on a series of amendments to the Brexit bill, including efforts to alter the Irish backstop and extend Article 50. Elsewhere, oil prices are in the green with Brent crude futures up around +1.0% while spot gold has added +0.3%. Looking ahead, futures are pointing to a relatively flat open on Wall Street with earnings due from Verizon, 3M and Pfizer before the opening bell. On the data front, we await the US advance goods trade balance, S&P/CS house price data and consumer confidence.
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