President Trump’s trade war with China may well be making headlines, but the threat it poses to global economic growth is doing nothing to take the heat out of Wall Street’s ongoing rally.
The Dow posted triple digit gains yesterday and futures prices indicate that major US indices will start Wednesday’s session either flat or slightly higher. The positive sentiment is being seen across much of Europe, although London’s FTSE 100 has sold off on the back of hotter than expected UK inflation data. The pound is finding some much needed support as a result, with this news having the potential to put pressure on the Bank of England to hike interest rates faster than had previously been expected.
There is some housing data due from the US ahead of the opening bell and although this is unlikely to have sufficient clout to swing market sentiment, with a correction arguably overdue, any notable shortfall here could raise concerns that the underlying mood will soon change. It’s worth bearing in mind that historically, September tends to be a tough month for US equities.
Ahead of the open we’re calling the DOW up 21 at 26267 and the S&P unchanged at 2904.