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 appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr SÄ…dowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
