This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Yesterday’s weakness and indecision in the markets, prompted by a general dearth of major news, has been banished as investors look to some surprisingly positive data from the eurozone. Market-moving economic data has been absent so far this week, so today’s figures have been gratefully received by a market that, the occasional stop-hunt aside, is still casting around for reasons to move higher.
In London, weaker Chinese numbers from HSBC’s flash purchasing managers index (PMI) were quickly pushed out of the way by eurozone PMIs that give the smallest hint that, just maybe, things aren’t quite as bad across the Channel as had been previously thought. Particularly heartening was a welcome return to form by the German economy, which saw its august manufacturing sector move back into expansion territory. However, to cast a small shadow, it must be noted that France continues to lag behind its great partner across the Rhine; president François Hollande still has much work to do. ARM Holdings is enjoying a bounce after its and Apple’s results in the past 12 hours, helping to dispel some of the gloom that had surrounded the tech sector after a slew of weak earnings reports last week.
The procession of housing data continues with new home sales on the list today. Given the slightly underwhelming nature of earlier housing figures, a strong report today would be a much-needed tonic. The wait for the S&P 500 to hit 1700 goes on, but you get the feeling that once it does happen we may see a quick move higher. Ahead of the open, we expect the Dow to start 30 points higher, just below 15,600.