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Investors to focus on Services PMI data today

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Following the events on Saturday evening at London Bridge, the FTSE has opened marginally up in early trading. Support services business, Wolseley and Healthcare business, ConvaTec are leading the charge, both up 1% this morning. However, it’s the mining sector that is holding back progress through the likes of Antofagasta, Anglo American, Rio Tinto, Glencore and BHP Billiton.

Looking ahead, Spreadex Analyst Connor Campbell suggested – “In terms of data the main focus this Monday is on the latest services PMI. Analysts are expecting the UK’s figure to slip from 55.8 to 55.1 month-on-month; however it is worth noting that – by varying degrees – last week’s manufacturing and construction readings managed to beat forecasts.”

In the Eurozone, there’s more PMI data expected. Accendo Markets Analyst, Henry Croft added – “…in mainland Europe, both Spanish and Italian readings are seen falling, while the French print is seen confirmed at its highest level since 2011. Germany is expected to be confirmed falling marginally in May before the headline Eurozone figure is seen continuing its pull back from March’s 6-year highs”

Over in the US, equity markets on Friday one again closed at record highs, shrugging off a weaker than expected Non-Farm Payrolls release as markets continue to price in a Fed rate hike at next week’s policy meeting.

Henry Croft noted – “Despite this, Financial and Energy names underperformed the wider market on both the Dow Jones and S&P500, however this was not enough to offset gains for Tech stocks, which continued recent strength to help the Tech-focused Nasdaq outperform.”

On the US Dollar, ADS Securities Analyst, Konstantinos Anthis suggested – “The US Non-Farm Payrolls report on Friday was the latest piece of bearish data which has added to the downside pressure on the dollar. The likelihood of another rate hike may now be up for debate, and traders will be looking for further guidance from the Fed. If the previous statement is followed, that “if the data continues to come in bearish we will take a step back on hiking rates” this could translate into a bearish summer for the Dollar.”

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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