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
