Corporate Results Offset Tariff Worry; U.S. To Open Higher

Corporate Results Offset Tariff Worry; U.S. To Open Higher

London Capital Group  | Mar 13, 2018 08:42

Well-received corporate results and a tough stance against protectionism have been an aspirin for Europe’s Trump tariff headache.

The Xetra DAX benefited from solid results by German utilities firms RWE (LON:0HA0) and E.ON (LON:0MPP), which a day earlier announced plans to merge. The merger will be transformative for German utilities, which judging on today’s results are already on the right track.

A little apprehension about the UK Spring budget statement has held back the FTSE 100. Chancellor Phillip Hammond has rejigged the Spring Statement as a non-event with no tax or spending changes to be announced. The only hope for a market reaction will be to the new OBR forecasts, which are expected to revised higher. The economic picture could be very different by the budget-proper in the Autumn. Hammond has shown a preference for long-term debt reduction over short-term growth-boosting spending. Spreadsheet Phil will probably want to pocket the extra funds available thanks to better growth forecasts for a rainy Brexit day.

US futures point to a rebound on Wall Street from the souring sentiment, which reversed gains to send the Dow lower on Monday. US CPI data will be front-and centre but reduced wage pressures in February could keep a lid on market fears of runway inflation.

US opening calls

Dow Jones to open 71 points higher at 25,249

S&P 500 to open 4 points higher at 2787

Disclaimer: The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced. Losses can exceed deposits.

London Capital Group

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