ETX Capital Daily Market Bite, 3rd September 2013: European Markets Ride Wave Of Improved Sentiment
September 3, 2013 8:17 am
September 3rd, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist.
So, European stock markets are still riding the optimistic wave painted by Monday’s sentiment-pleasing PMIs from China, the UK and euro zone, all of which pointed to resurging strength in the global economy. US markets were closed for Labour day on Monday but the improved outlook propped up Wall Street stock futures — DJIA front month futures contract up a staggering 124 points, the corresponding S&P500 contract is up around 16.75 points.
Deal activity also props up the broader market — Nokia and Microsoft agree for the US tech giant to buy Nokia’s handset operations. This deal comes hot off the heels of Vodafone selling its Verizon Wireless holding to Verizon for a whopping $130billion. The pick-up in deal activity is a sure boost to confidence in the corporate world as companies grow optimistic over the health of the world. Large cap global companies are showing an increasing propensity to stop hoarding big piles of cash and put money to work in order to reward shareholders who have had to suffer over the past four years.
US stocks are to play catch up later in the session, helped further by receding fears over an imminent attack on Syria by the US after President Obama threw the proposal of strike to Congress for support which does not reconvene until next Monday. Taper talk of course the narrative so today it is America’s turn to print manufacturing PMIs which like all US data over the summer, have been used as a gauge to second guess the Fed’s most likely move on adjusting the pace of asset purchases.
Overnight, Asian markets rose on the improving tone out of the US — Australia’s RBA held rates steady — the positive tone geared us up here in Europe for a positive start. Must be noted that we are seeing some mild selling pressure as investors refrain from taking bold moves ahead of data out today. We have reports on UK construction activity, producer prices from the Eurozone for further clues. Earlier, the British Retail Consortium revealed that UK retail sales increased 1.8% YoY in August, after a 2.2% YoY increase in July.
September 3rd, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist.
So, European stock markets are still riding the optimistic wave painted by Monday’s sentiment-pleasing PMIs from China, the UK and euro zone, all of which pointed to resurging strength in the global economy. US markets were closed for Labour day on Monday but the improved outlook propped up Wall Street stock futures — DJIA front month futures contract up a staggering 124 points, the corresponding S&P500 contract is up around 16.75 points.
Deal activity also props up the broader market — Nokia and Microsoft agree for the US tech giant to buy Nokia’s handset operations. This deal comes hot off the heels of Vodafone selling its Verizon Wireless holding to Verizon for a whopping $130billion. The pick-up in deal activity is a sure boost to confidence in the corporate world as companies grow optimistic over the health of the world. Large cap global companies are showing an increasing propensity to stop hoarding big piles of cash and put money to work in order to reward shareholders who have had to suffer over the past four years.
US stocks are to play catch up later in the session, helped further by receding fears over an imminent attack on Syria by the US after President Obama threw the proposal of strike to Congress for support which does not reconvene until next Monday. Taper talk of course the narrative so today it is America’s turn to print manufacturing PMIs which like all US data over the summer, have been used as a gauge to second guess the Fed’s most likely move on adjusting the pace of asset purchases.
Overnight, Asian markets rose on the improving tone out of the US — Australia’s RBA held rates steady — the positive tone geared us up here in Europe for a positive start. Must be noted that we are seeing some mild selling pressure as investors refrain from taking bold moves ahead of data out today. We have reports on UK construction activity, producer prices from the Eurozone for further clues. Earlier, the British Retail Consortium revealed that UK retail sales increased 1.8% YoY in August, after a 2.2% YoY increase in July.
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