Another cautious day was observed for European markets yesterday with little in the way of overall direction, after China exports for May plunged by -7.5% raising concerns about the outlook for global demand, while the Bank of Canada followed the RBA in hiking interest rates by 25bps, APA reports citing FXSTREET.
With the prospect of more interest rate rises on the way yields pushed higher, which in turn acted as a drag on equity markets more broadly, even as US markets finished the session mixed, while Asia markets have slipped back.
The Russell 2000 finished the day strongly higher, helped by the recovery in regional bank stocks, while the Nasdaq 100 fell sharply, and the S&P500 also closing lower.
With the Federal Reserve, ECB, and Bank of Japan due next week and this week’s hikes pointing to further interest rate pain, bets about a Fed pause next week are being taken off the table over concern the Fed may well follow suit.
FTSE100 is expected to open 12 points lower at 7,612.
DAX is expected to open 59 points lower at 15,901.
CAC40 is expected to open 25 points lower at 7,177.