After a couple of low key sessions sessions, the European indices are looking livelier this morning.
Spreadex Analyst, Connor Campbell commented – “The FTSE moved at the slowest pace after the bell, rising just 0.1% – though, unlike its European peers, it isn’t still trying to reclaim last week’s losses, but build to a fresh all-time high. Nevertheless, the FTSE already spiked to an intraday peak of 7540 before settling back, meaning come closing time there could well be another broken record – that is, dependent on how the day’s key events pan out. The first test is second glimpse at the UK’s Q1 growth. Analysts aren’t expecting a revision, a situation that in theory would soften up sterling and, therefore, work in the FTSE’s favour. Bigger than that GDP reading is the day-long OPEC meeting in Vienna, as the oil cabal tries to hash out an extension to its current output cut agreement.”
Over in the US, equity markets once again closed higher as the S&P 500 recorded a fresh all-time closing high.
Accendo Markets Analyst, Mike van Dulken noted – “This latest move higher comes as investors welcomed the hawkish Fed minutes from May, with expectations of a June hike increasing further. The Dow Jones saw Goldman Sachs contributing the most gains for the second straight session, while the Nasdaq again outperformed, up 0.4%.”
It’s the OPEC meeting that is likely to take centre stage today. Markets are expecting a 9-month extension to coordinated oil production cuts. The closing press conference is scheduled at 4pm this afternoon, but Mike van Dulken warned – “prepare for drama throughout the day as oil ministers fill the airwaves with commentary on the day’s discussions. A 9-month cut extension has been talked up so much that anything less will likely be a disappointment. Watch Oil prices.”