European Benchmarks Expected To Open Higher


Markets in Europe are expected to open higher on Tuesday amidst positive sentiment generated by China’s GDP surprise. Lingering concerns over inflation, interest rates as well as growth, and the health of the corporate sector as indicated by the earnings updates are expected to drive sentiment as trading progresses.

Wall Street had closed on a positive note on Monday amidst upbeat earnings updates. The Nasdaq Composite gained 0.28 percent to close at 12,157.72 whereas the Dow Jones Industrial Average added 0.30 percent to finish trading at 33,987.18.

Sentiment was however cautious at the European bourses and markets in the region closed mostly lower on Monday. France’s CAC 40 dropped 0.28 percent followed by Switzerland’s SMI that shed 0.27 percent. Germany’s DAX weakened 0.11 percent. The pan-European Stoxx-600 edged 0.01 percent lower. U.K.’s FTSE 100 however withstood the bearish sentiment to register gains of 0.10 percent.

Current indications from the European stock futures imply a positive sentiment at play. The DAX Futures (Jun) is currently trading 0.20 percent higher. The FTSE 100 Futures (Jun) is currently trading 0.24 percent higher. The SMI Futures (Jun) had closed 0.01 percent higher on Monday. The CAC 40 Futures (May) had closed 0.05 percent lower whereas the pan-European Stoxx 50 Futures (Jun) had closed 0.16 percent higher on Monday.

American stock futures are trading in mildly positive territory. The US 30 (DJIA) is up 0.02 percent whereas the US500 (S&P 500) is trading 0.01 percent higher.

Asian stock markets are trading mixed despite positive data from China. Japan’s Nikkei 225 has gained 0.45 percent. China’s Shanghai Composite is trading flat. Hong Kong’s Hang Seng has dropped 0.86 percent. Australia’s S&P ASX 200 has shed 0.45 percent whereas New Zealand’s NZX 50 has declined 0.36 percent. South Korea’s KOSPI has dropped 0.28 percent. India’s Nifty 50 has shed 0.10 percent.

The Dollar Index (DXY), a measure of the Dollar’s strength relative to six currencies, weakened to 102.02, down 0.08 percent on an overnight basis. The EUR/USD pair has increased 0.14 percent to 1.0941 whereas the GBP/USD pair has gained 0.12 percent to trade at 1.2388.

Gold Futures for June settlement rebounded, and are trading at $2,012.75 per troy ounce, up 0.29 percent on an overnight basis.

Crude prices made a modest rally after China’s positive GDP surprise. Brent Crude Futures for June settlement has increased 0.39 percent to $85.08 whereas WTI Crude Futures for June settlement has increased 0.33 percent to $81.10.

Key labor market updates including Unemployment Rate and Claimant Count Change are due from U.K. early on Tuesday. Markets expect the unemployment rate to be steady at 3.7 percent. Markets also expect the ZEW Economic Sentiment Index for April from Germany due on Tuesday morning to touch 15.3 versus 13 in the previous month. The ZEW Economic Sentiment Index for April is due from the Euro Area also.

Major earnings updates due on Tuesday from the region are from Ericsson, Sika, JD Sports Fashion, Entain, Brunello Cucinelli, Investment Oresund, Faurecia and Lagardere.

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