What you need to know before the open – 02/10
Most analysts are seeing the rebound in the markets yesterday as a sign that most believe US politicians will come to their senses sooner rather than later, with the hope that the head bumping won't become entwined with debates over the debt ceiling. European markets will this morning, however, be muted by uncertainty emanating from the US, Italy – with the impending confidence vote – and the ECB rate meeting this afternoon.
Good morning ftse -6, dow -25, dax +1, SP 1692.5, Nikkei 305, h/s +189, brent 107.45, nymex 101.5, gold 1292
— Wayno (@waynog) October 2, 2013
Looking at daily charts, #ftse is under the 100ema, #dow and #nikkei en route to it, #spx and #dax looking stronger
— macdan (@macdansmooth) October 2, 2013
Euro Stoxx 50 futures down 0.1%. * FTSE 100 futures down 0.2%; CAC futures down 0.3% DAX futures down 0.1%;
— DA Market Securities (@itradeph) October 2, 2013
President Draghi will be speaking at the ECB meeting in Paris today. Change in monetary policy isn't expected, but the current strength of the Euro could well throw up questions about its effect on weaker European economies, along with questions on the slow recovery in Europe, weak business lending and the disjointed nature of the banking system.
The ECB rate decision today seems like it won't surprise us, however Draghi might drop a market moving comment or two!
— macdan (@macdansmooth) October 2, 2013
Key events:
- UK PMI construction for September at 9.28. Expected at 57.5, up from 57.2.
- ECB interest rate decision at 12.45. Expected unchanged at 0.5 per cent.
- US ADP employment change for September at 13.15. Expected at 177,000, up from 176,000.
- ECB monetary policy statement and press conference at 13.50.