US Pre Market (Labor Day) - Wall Street holiday leaves US indices partying like it’s 1999
Underlying markets on Wall Street are closed for the Labor Day holiday today, but futures markets will be providing pricing for many assets including US equity indices.
Data out of Europe has been rather limited this morning, although a shortfall in UK manufacturing PMI for August is reflecting the uncertain economic outlook being faced by the country as Brexit deadlines loom.
Even the beaten down pound is proving insufficient to support the manufacturing sector, so the corresponding construction and services prints due over the next two days will be closely followed. The resulting weakness for sterling is however bolstering the FTSE 100 in early trade.
Wall Street futures rallied notably after the close on Friday night with profit taking ahead of the weekend break being largely reversed. There’s confidence that the US trade talks, despite having missed an end of month deadline will deliver a positive result for business and this seems to be key in driving sentiment.
We’re currently calling the Dow up 45 at 26010 and the S&P up 7 at 2909.