European stocks were mostly firmer in early trade on Monday. A rise in the price of oil has taken the sting out of weak Chinese trade data.
Output-limiting Canadian wildfires, a new Saudi oil minister and a report showing new oil discoveries at a 60-year low are assisting Brent crude hold above $46 per barrel.
Free-falling iron ore and copper prices are a serious headwind to FTSE 100 mining stocks. Industrial metals dropped heavily last week and are adding to losses on Monday. Chinese stockpiles of Iron Ore have risen to the highest in over a year after regulators clamped down on speculation within metals futures markets.
The latest Chinese trade data further softens the global growth outlook. A report in Chinese newspaper ‘People’s Daily’ is causing some concern amongst those wishing for Chinese stimulus to carry the global economy out its recent slowdown. An “authoritative person” has suggested China abandon the idea of loosening money conditions to accelerate economic growth.
The Greek parliament approving pension and tax reforms is one hurdle jumped before the indebted country can receives its next bailout tranche in time to pay debts due in June. A stalemate over “contingency measures” as well as the ongoing debate over debt relief suggests nothing will be agreed at a meeting with creditors on Monday.
German factory orders rose 1.9% m/m in March. The data has had little impact on the euro since more recent economic releases have shown a slowdown started in April.
US stocks look set for a flattish open with Chinese growth, oil and corporate earnings all in focus as investors digest the implications of last week’s payrolls data.
Facebook (NASDAQ:FB) shares may be in focus after winning a copyright battle in a Chinese court. The legal victory could be a sign that CEO Mark Zuckerberg currying favour with Chinese officials could be having some positive effect. Getting inside the great firewall of China would be very lucrative for Facebook but the company is conscious of public opinion surrounding censorship.
USA pre-opening levels
S&P 500: 6 points higher at 2,063
Dow Jones: 49 points higher at 17,789
Nasdaq 100: 16 points higher at 4,346
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