1st Nov 2013 12:57
LONDON (Alliance News) - US stock futures are pointing to a slightly higher open on Wall Street for the first trading day of November, even though major European markets outside London dipped in early trade.
US markets are showing a little more positivity ahead of the big data release of the day, the ISM manufacturing PMI at 1400 BST. The DJIA, S&P500 and the Nasdaq composite are all indicated to open about 0.2% higher.
Following a huge surprise to the upside on the Chicago PMI reading on Thursday, which came in at 65.9 for October, up from 55.7 in September, traders are wondering whether the ISM will provide a similar surprise. The expectation is for a reading of 55.0, down from 56.2 previously.
The FTSE 100 is just marginally higher on the day at 6,738.20 while the CAC40 and the DAX are both about 0.2% lower.
?Risk aversion is carrying over from yesterday?s US session through Asia and into Europe as investors continue to digest Wednesday?s FOMC policy meeting. The central bank disappointed the markets? hopes for a meaningful dovish shift in official rhetoric, weighing on sentiment across financial markets. A respite may be in sight however as October?s ISM Manufacturing gauge crosses the wires", said DailyFX strategist Ilya Spivak.
The pound and the euro are both stable at lower levels as the dollar regains strength across the board on the back of the less-dovish-than-expected Fed and as speculation mounts about a possible rate cut at the ECB next week in the wake of low eurozone inflation data. Currently the euro buys USD1.3515 and the pound USD1.5968.
Commodities are also continuing the move lower. Gold is trading at USD1,322.65 per oz and Brent Oil at USD107.55 per barrel as the dollar strengthens.
Within UK equities, banks continue to suffer, with RBS down 6% after announcing the details of its plan to deal with toxic assets and Barclays down 2% amid reports the US mortgage giant Fannie Mae is looking for GBP800 in compensation from some UK banks in relation to the Libor scandal. Banks are also being hit by the widening Forex market probes, the Financial Times reporting Friday that RBS has suspended two traders in its foreign exchange division.
By Jon Darby; [email protected]; @jondarby100
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