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 and E.on, 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