Equities claw back losses

Equity markets begin to take back some of yesterday’s losses as Greek worries are momentarily suspended. 

Source: Bloomberg

After a forced period of silence due to the UK general election we will again hear from Bank of England governor Mark Carney today, as he and the Monetary Policy Committee release the latest inflation report. In truth, being forced to remain quiet will not have been a burden to the MPC as very few of the fundamentals have altered over the last six weeks.

The fact that French GDP figures have not come in at the forecast levels will not have surprised many, however the fact that they have outperformed will. The Gallic nation for so long has underperformed and weighed down the eurozone, but could this be a shift in the norm or just one wayward swallow? 

One of the sectors under scrutiny following the Conservative win last week has been the UK house builders, and first up to report has been Barratt Developments. Regardless of the high levels of expectation that it has previously set for itself, today's surprisingly good figures have seen the shares jump another 3.35% higher.

As much as SABMiller has tried to impress the markets, the cautious outlook for the second half of the year has ensured that investors have reigned in any overenthusiasm.

This afternoon will see the US release the latest retail sales figures which are expected to reflect a contraction in the monthly levels, further underlying the general cooling of economic data that has been coming out of America, and partially explaining why currency markets have generically pushed the date for interest rate rises out to September.

There are still a few big names posting quarterly figures and today it is the turn of both Cisco, Ralph Lauren and JC Penney.

Ahead of the open we expect the Dow Jones to start 87 points higher at 18,155.

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