Following on from yesterday’s rebound, European markets were up slightly in early trading.
The FTSE was hampered by Martin Sorrell’s WPP which plunged 10% this Wednesday after the advertising giant was forced to cut its full year forecasts.” Spreadex Analyst, Connor Campbell suggested “The firm now expects annual revenue and net sales growth of between zero and 1%, down from the 2% stated in March (and the 3% suggested before that), leaving it on track for its worse year since the 2009 ad recession”
Over in the Eurozone, The German and French indices are up in early trading, rising 0.3% and 0.1% respectively as the Euro continues shed some of its recent growth against the dollar. The Euro is braced for the next round of PMI readings. Today is the turn of Manufacturing and services with the region as a whole expected to slip from 56.6 to 56.3 month-on-month, while the services figure is forecast to remain unchanged at 55.4.
Over in the US, equity markets closed sharply higher yesterday. Accendo Markets Analyst, Henry Croft noted this was “in reaction to the update on the Trump administration’s tax reform plans, with the Dow Jones enjoying its best trading session since April with a gain of 196 points.”
“The S&P 500 closed 1% higher as Tech names led the index higher, buoyed by the prospect of cheaper profit repatriation costs, whilst unsurprisingly the Nasdaq outperformed, closing 1.4% stronger.”
The dollar is stronger across the board this morning with the US currency posting gains against its peers.
This can be attributed to “A stronger appetite for the currency head of the Jackson Hole event, where the Fed is expected to prepare the markets for a balance sheet adjustment, and fresh weakness from its European counterparties.” suggested ADS Securities Analyst, Konstantinos Anthis, adding “At the same time, there were rumours yesterday that US policymakers are finally taking some steps to push forward tax reductions for US corporations. If we see some concrete evidence that progress is being made then the dollar will appreciate further as investors will divert their attention away from the usual political turmoil associated with this administration.”