Europe
Stocks in Europe are mixed, the FTSE 100 is higher, while the DAX, CAC and MIB are showing small losses. We have not seen any major moves today as dealers are waiting to see the minutes from the Federal Reserve meeting earlier this month. The minutes will be released at 7pm London time. Investors will use the update to try and determine how likely the Federal Reserve is to increase interest rates next month.
Dixons Carphone (LON:DC) is up 5% on the day after the company issued an encouraging trading statement. Total sales were up 9%, and the CEO stated consumer sentiment was strong, despite the worry that Brexit would hit the British consumer’s appetite.
Kingfisher (LON:KGF) is still suffering from weak sales in France. The UK and Ireland division performed well, but it wasn’t enough to stop the share price from falling over 6%.
US
The Dow Jones and the S&P 500 are a touch higher as dealers are waiting to see the Federal Reserve minutes from the latest meeting. The minutes will give investors an insight into what the US central bank is thinking. The Fed funds futures are pricing in a 100% chance of an interest rate hike next month, and this evening’s update will provide some clarity.
Lowe’s (NYSE:LOW) is lower on the day after the company posted figures which missed estimates. Earnings per share (EPS), revenue and same-store sales came in below estimates. Also, the full-year EPS forecast was lowered from $4.64 to $4.30. The company’s competitor, Home Depot (NYSE:HD), had solid numbers last week, and this is adding to Lowe’s pain.
HP (NYSE:HPQ) will reveal second their quarter numbers at 10pm London time. The share price has been rising steadily since February 2016, but the stock has yet to fill the enormous gap lower that was created in October 2015.
Triumph Group's (NYSE:TGI) share price has been sliding since 2013, and today’s announcement hasn’t helped much. The business revealed a full-year revenue of $3.53 billion, and the forecast for next year is in between $3.1 billion to $3.2 billion. The firm registered a loss for the year, but at least the loss narrowed.
FX
The EUR/USD is slightly softer today after European Central Bank (ECB) chief Mario Draghi stated the recovery in the eurozone is going well, and there is no need to alter its policy. Some traders viewed the positive run of economic announcements from the eurozone as a sign that the central bank might reign in their loose monetary policy, but Mr Draghi is content to keep the policy the same.
The GBP/USD is slightly offside today, and the lack of economic announcements from the UK added to the shortfall in volatility. Traders will be tuned into the Fed meeting minutes later on. Traders will be trying to decipher if the US central bank will go ahead with an interest rate rise next month or not.
Commodities
Gold is back above the $1250 mark after dipping to a five day low in the morning. The precious metal is under a bit of pressure as dealers are fearful the Fed will hike interest rates next month. The release of the Fed meeting minutes will be the highlight of the session. The precious metal has been on the rise since the 9th of May, but a hawkish tone from the Fed could see that reversed.
WTI and Brent crude popped higher after the Energy Information Administration (EIA) report showed that oil inventories declined by 4.4 million barrels, and that was much bigger than the 2.4 million barrel decline that was anticipated.
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