Stock markets in Europe are in positive territory as the sentiment is positive across the board for a change. The FTSE 100 have been edging lower this week, and now are we seeing a bounce back, which is being helped along by mining and health care stocks.
Carpetright (LON:CPRC) issued a profit warning and the share price has collapsed. The retailer stated total sales for the 11 weeks until mid-January fell by 2.3%. The crucial post-Christmas trading period was significantly below forecasts. The share price has fallen to an all-time low which sums up how bearish the sentiment is. Shares in Kingfisher (LON:KGF) and DFS Furniture (LON:DFSD) have been dragged lower on the back of the Carpetright news.
Morgan Stanley (NYSE:MS) upgraded their rating on easyJet (LON:EZJ) to overweight from equal weight. The bank upped their target price from 1490p to 1725p, and the stock is currently trading at 1558p, up 2.9% on the day.
GBP/USD initially sold-off after the UK released retail sales figure that were well below market expectations, but the currency pair rebounded. In December on a month-on-month basis UK retail sales fell by 1.5%, while the market was expecting a drop of only 0.6%. Annually the figure increased by 1.4%, while the consensus was for a 3% jump.
EUR/USD is edging higher as the US dollar continues to grind lower. The euro has been enjoying a positive run against the US dollar since November and it appears the trend is likely to continue. German producer price index (PPI) came in 2.3% in December, meeting expectations.
At 1.30pm (UK time) the US will announce the University of Michigan consumer sentiment report, and traders are anticipating a reading of 97, which would be an increase on the December reading of 96.8.
Schlumberger (NYSE:SLB) will release its quarterly results later today.
We are expecting the Dow Jones to open up 14 points at 26,031, and we are calling the S&P 500 up 4 points at 2802.
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