US equities rose on Monday following a rout last week with investors ahead to the busiest week of earnings reports.
United States
The S&P 500 rose 0.87%, while the Nasdaq Composite increased 1.11% along with the Russell 2000 1.02% and the VIX slumped 9.46% to 16.94. Nearly a third of S&P 500 companies are set to report earnings this week including large caps from the magnificent seven. Companies due to report tonight include Tesla, PepsiCo, Visa, Lockheed Martin, Invesco and General Motors.
There was no major economic data released overnight to guide investors who now turn their attention to tonight’s PMI reports for April and new home sales for March. Expectations for both services and manufacturing are to improve over the month showing both remain at expansionary levels.
Europe
The FTSE 100 ended on a record high at 8023.87, a gain of 1.62% for the session. European equities broadly higher on Monday with the Euro Stoxx 600 up 0.60% along with the DAX and CAC by 0.70% and 0.22% respectively. Overnight the latest consumer confidence for the Eurozone in April was modestly below expectations at -14.7 compared to -14.0 forecast. Tonight the focus will be the latest PMI reports for the region expected to show services remains at expansionary levels while manufacturing contracts.
Australia
ASX futures are pointing to a gain for local equities today up 0.25% overnight to 7693. On Monday the market ended 1.1% higher at 7649.2 following calmer geopolitical tensions in the Middle East. In addition, the energy sector recorded a -1.5% decline due to a weakness in oil prices with Woodside Energy down -2.6%. As with global counterparts, the latest PMI results are being reported at 9:00AM while the highlight of the week will be tomorrows inflation data for the first quarter.
Commodities
Oil prices are modestly low overnight with both WTI and Brent Crude down -0.39% and -0.14% following a whipsawing market on Friday as investors reacted to an Israeli retaliation although concerns were downplayed by Iranian officials easing tensions. Iron ore closed on Monday -0.32% lower and is a further -0.67% weaker this morning. Gold finished on Monday -2.70% weaker however rose 0.13% this morning while silver slumped -5.20%.
Economic Calendar
Australian PMI (MoM Apr) 09:00
Eurozone PMI (MoM Apr) 18:00
US PMI (MoM Apr) 23:45
US New Home Sales (MoM Mar) 00:00
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
