Markets in a Flash
- Asian markets continued to fall over night as the US closed heavily down yesterday on worse than expected consumer confidence data.
- European markets are showing small gains this morning as bank borrowing from the ECB is less than expected.
- Commodities are showing gains as well, as oil and gold are both up.
- The EUR finds strength on the back of the ECB bank lending news.
- The GBP weakens against currencies across the board.
- BP Plc’s shares in London recover 8% causing the FTSE 100 to show a larger rise.
- US equity futures are showing gains after yesterday’s fall indicating a higher open.
Banks have demanded considerably less loans than expected from the European Central Bank. As loans of €442B made a year ago become due to be paid back to the ECB, the lack of need for new lending has boosted hopes that European banks are healthier than expected. As the take up of 3 month credit is less than expected investors believe that the banks liquidity positions are better than first thought. This has put bullish forces on the European equity markets and the Euro this morning.
0815ET - ADP Employment Report
Previous 55000 Actual 13000
The ADP report shows employment figures representative of the US private sector. The report can be an indicator to the non-farm payrolls figure released next month. After this month’s poor non-farm payroll figure a further increase in the employment market but at a slower rate is what many would have expected. This is the fifth consecutive month of gains and is under the average for this period of 34000. This may indicate a slowing in employment growth as we go into the summer.
Coming up Today
0945ET – Chicago PMI
Previous 59.7 Consensus 59.7
Consensus Range 57.0 to 62.9
Disclosure: no positions