European equity gains are being eroded

Stocks in Europe are still in positive territory, but their early gains are diminishing. 

Source: Bloomberg

The gains that were added to the European equity markets, courtesy of the rally in Asia overnight are quickly being eroded. Stock markets as of late are unable to hold a rally and today is no different.

Equity markets in London and the eurozone have been trending lower since early February, and today’s move points to further losses. 

Sterling is taking advantage of William Dudley’s dovish comments yesterday, and is continuing to climb against the US dollar. GBP/USD has been pushing higher since late January and traders would be wise to copy the trend. Pullbacks may provide further buying strength, if you are not already long. The ‘Super Thursday’ update will be the economic highlight of the day.

Oil’s surge has stalled, and now the market seems to be torn between retesting the high of late January and early February, or else rolling over again. Speculation over production cuts are doing the rounds but traders are nervous about staying long for a prolonged period. A failure to retake $36 on Brent, and then the $34 mark on WTI would be a sign that losses lay ahead. 

FTSE 100 risers and fallers (as of 10.10am)


Company % change Index points
Anglo American +10.27 +1.42
BHP Billiton +8.50 +4.47
Glencore +7.48 +2.90
Antofagasta +6.87 +0.35
Rio Tinto +6.65 +5.33


Company % change Index points
Coca-Cola HBC AG (LSE) -4.71 -0.50
AstraZeneca -4.18 -9.02
International Consolidated Airlines -1.91 -0.71
Imperial Tobacco Group -1.60 -2.22
Unilever -0.56 -0.78


The day ahead


Economic data

12pm – BoE inflation report, BoE interest rate decision, BoE asset purchase facility, and MPC voting breakdown. The forecast is for interest rates and the asset purchase facility to remain at 0.5% and £375 billion respectively. MPC members are anticipated to vote 8-1 to keep interest rates on hold, and vote 9-0 to hold the asset purchase scheme at £375 billion.

12.45pm – Mark Carney speech

1.30pm – US jobless claims: exp 277,000, prior 278,000.

Corporate reporting

US Quarterly earnings –  ConocoPhillips, Dunkin' Brands Group Inc, LinkedIn Corp

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