European cash equity markets are broadly higher ahead of the midway stage with the Euro Stoxx 600 touching a fresh five-month high at the open (FTSE %, DAX %, CAC %, FTSE MIB %). Basic resource stocks are among the best performers, boosted by weekend press reports that suggested the US and China are in the final stages of completing a trade deal. The Wall Street Journal article has also underpinned broader risk sentiment and saw both the Australian Dollar and New Zealand Dollar gap higher overnight before fading back towards the flat line. The US ten-year yield opened at a fresh six-week high but has also retreated and slipped into negative territory in recent trade. Elsewhere in currency space, Sterling has emerged as the one of the stronger G10 performers to start the week as the threat of a no-deal Brexit appears to have receded further over the weekend. According to the Guardian, Theresa May’s “hopes of winning parliamentary approval for her Brexit deal grew last night as the leader of Conservative backbenchers softened his opposition”. Gains in the pound were tempered somewhat by a soft Construction PMI print while the Euro is in the red despite softer stronger readings for Euro Zone Sentix Investor Confidence and producer prices. Elsewhere, oil prices are ahead with US crude futures and Brent both up around one-percent. Spot gold has lost -0.5%. Looking ahead, futures are pointing to a slightly higher open on Wall with outperformance seen in the Nasdaq. On the data front, we await US construction spending and ISM New York.
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