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Trading this morning has been lacklustre as a lack of economic announcements from the UK and the eurozone has provided traders with few reasons to trade.
European stocks are faring better than their British counterparts as the cost of borrowing for the Portuguese government has dropped; the yield on the ten-year government bond is below the important 7% level, which many believe to be the bailout benchmark. The increased sense of political stability in Lisbon has increased investor confidence in the eurozone.
Across the pond, we are calling the Dow up two points at 15,543. The latest Chicago Federal Reserve national activity index came in at -0.13 in June, which compared with -0.29 in May. The reaction to the announcement was muted.
Meanwhile, US earnings season continues, as oil giant Halliburton announces an 8% drop in year-on-year net income to $677 million. However, the chief executive Dave Leasar stated he ‘continues to be optimistic’.
At 3pm (London time), the US will announce the latest existing home sales report. If it comes in better than expected we could see US stocks rally.