US500 and US100 are gaining little before the publication of potentially good flash PMI indices for April
Most European indices are in retreat. On the other hand, contracts on Wall Street are slightly gaining compared to yesterday, when at the end of the session there was a huge sell-off related to US tax plans. Today investors are waiting for the first data for the second quarter. These will be preliminary PMI indices for manufacturing and services sectors. The manufacturing PMI is expected to rise to 60.5 points from 59.1. In turn, the service sector is to increase to 61.9 from 60.4. It is worth noting that the manufacturing PMI never surpassed 60 points (looking at the history up to 2012). Data from Europe surprised positively, although problems are still visible on the part of the service sector. The data will be released just after the Wall Street session starts at 2:45 PM BST.
Yesterday a strong pullback stopped around the 200.0 Fibonacci retracement of the recent correction. Interestingly, the smaller companies listed on Russell 2000 did better. This could be because the capital gains on these smaller companies may simply not be as staggering compared to firms which are listed on the S&P 500 or Nasdaq,which reduces the impact of a potential new tax hike. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
