Markets: all quiet
European trading volumes were inevitably light with the US markets closed yesterday.
UK indices were absolutely flat. No FTSE 100 stock moved by more than 2%, with the sector indices clustered between rallying REITs +1.7% and lagging construction -1.1%. Travel & leisure +0.9% again led our PHySiCS mid/small cap sectors and is +5.7% over the past week, helped by positive news from the airlines stocks; the good value and low risk factors lagged.
Real estate stocks +3.3% were the clear standout on the Euro Stoxx sector leaderboard as banks slipped -1.0%.
Overnight. Asian indices turned broadly lower ahead of the US reopening. US Treasury yields were unchanged. The oil price continues its pullback as the impact of extended production cuts is overwhelmed by demand worries. Europe should start easier.
Early numbers. Dow, S&P, NASDAQ, Russell 2k closed, VIX 13.57, US 10-yr 3.86%; Nikkei -0.47%, Hang Seng -1.36%, Shanghai Comp -0.63%; £=$1.2712, £=€1.1686, Brent $75.89/bbl, Gold $1933.00, FTSE 100 indication -6 (at 6.35 UK).
Macro: first service
Services PMI day began with the Caixin release in China. The June reading slipped to a five-month low of 53.9 (May 57.1), although the employment measure firmed to a three-month high. The business confidence reading also improved, in contrast to the decline in the equivalent manufacturing sector measures earlier this week.
Today’s events. Eurozone June services PMI (9.0) 52.4, composite PMI 50.3; UK June services PMI (9.30) 53.7, composite PMI 52.8; Eurozone May PPI (10.0) -1.8% MoM, -1.3% YoY; US May factory orders (3.0) +0.8% MoM; June FOMC minutes (7.0).
