- Uncertain mood on the markets not helped by weakening economic data
- But will this delay tapering?
- ECB indications on its future bond purchases coming next week
European stock markets showed some signs of wanting to kick on after shrugging off some early weakness at the start of the session. The FTSE 100 is handicapped to the tune of 13pts already due to ex-dividend factors but the overall tone was initially one of caution as yesterday’s ADP jobs miss has investors looking ahead to tomorrow’s nonfarm payrolls. Slightly hawkish chatter around the European Central Bank is also maybe leading to some caution, whilst there is yet further evidence of China’s crackdown on tech firms as it hauls up 11 ride-hailing companies for ‘illegal behaviour’. After an hour’s trade the main bourses were trading with a bit more confidence, up by around 0.1-0.2 per cent, but still stuck in recent ranges.
Wall Street ended the day largely flat with defensive/bond proxies real estate and utilities leading the gainers, whilst risk-on sectors like energy and financials were the weakest. US 10yr yields at 1.30 per cent in the middle of the week’s range. Note continued rotation into mega cap tech with Apple and Alphabet hitting record highs and lifting the Nasdaq Composite to another all-time peak, though both stocks pared gains to finish off their highs. Reopening did better in Europe yesterday as the Stoxx 600 outperformed.