Following yesterday’s disappointing day for stocks, we’ve seen a little bit of a rebound this morning. While investors continue to remain nervous about Trump’s policy decisions the focus has shifted back to the UK and Europe today with the start of a two day debate over the UK government’s parliamentary bill to begin the formal Brexit process, and some improving economic data from a number of countries in the Euro area.
In the Eurozone GDP figures have been released this morning. Inflation in Spain has increased to 3% as has the cost of living in France, up by 1.4%; while the broader EU CPI measure jumped to 1.8% largely driven by a jump in energy prices.
The French economy grew 1.1% in 2016 slightly less than expected but despite this Michel Sapin, the French minister of finance, insisted the French economy is still moving in the right direction and reducing unemployment.
Overall, Eurozone GDP came in at 0.5% for the last quarter which was better than forecast and unemployment fell. All this positive data suggests the Eurozone is recovering slowly, though Italy continues to remain a weak point.
The US dollar continues to remain under pressure over concerns about the new US President’s policy mix. Traders are now in wait and see mode as the Fed starts its two day meeting with the latest statement of the US economy likely to be examined closely for clues as to the next move for interest rate policy.
The pound has slipped back this morning following data which suggested that UK consumers cut back on borrowing which would indicate uncertainty towards the strength of consumer spending. Reports that the triggering of article 50 may well happen on the 9h March, earlier than expected may well also be weighing on the pound.
US consumer confidence will be announced at 3pm UK time with the forecast to be slightly lower than the previous month.
Tonight will see the release of Apple’s earning. Apple’s iPhone sales are predicted to have increased following three quarters of declines.
Dow Jones is expected to open 48 points lower at 19923.
SP500 is expected to open 4 points lower at 2276.
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