European cash equity markets are mixed ahead of the midway stage with moves in either direction on the small side (FTSE +0.3%, DAX -0.3%, CAC -0.5%, FTSE MIB 0.0%). Oil related stocks are among the best performers, tracking crude prices higher with front-month Brent back above $63 for the first time since early December. Germany’s Wirecard has also surged over ten-percent as they maintain no wrongdoing as alleged by the FT while the auto sector is providing a drag. Moves in the bond markets have also been relatively muted with German Bunds nursing a minor loss; Gilts crept up to a new session high after UK construction PMI fell short of expectations at 50.6 (f/c. 52.6). Italian BTP’s did drop again at the open after Friday’s slump but have since recovered back to flat for the day. Data elsewhere saw Euro Zone Sentix investor confidence drop to -3.7 (f/c. -0.6) from -1.5 while PPI was also below forecasts at +3.0% (f/c. +3.2%). In currency space, the Dollar Index has edged up +0.1% to 95.7 while the Japanese Yen has fallen to the bottom of the G10 pile. Sterling has softened slightly on the construction PMI miss and ongoing Brexit related uncertainty as the picture has not become much cleared over the weekend. Looking ahead, futures are pointing to a relatively flat open on Wall Street with earnings due from Sysco before the bell. On the data front, we await US Factory Orders, ISM New York and the Conference Board Employment Trends Index.
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