Currency traders turn to ISM services for data
On Wednesday, traders await the eurozone producer price index, which is expected to fall by 5.1% YoY in April.
European equity markets
European equity markets are poised to open higher on Wednesday, following a positive US session the previous day. Asia–Pacific (APAC) also traded mostly higher. In Australia, the economy expanded at a 0.1% pace in the first quarter of 2024, marking an annual growth rate of just 1.1%, one of the weakest readings since the pandemic recovery began.
Caixin Services PMI
In China, service activity accelerated in May at its fastest pace in 10 months. Caixin Services PMI rose to 54 from 52.5 in April, expanding for the 17th straight month and growing at the fastest pace since July 2023.
The eurozone producer price index
On Wednesday, traders await the eurozone producer price index, which is expected to fall by 5.1% year-on-year (YoY) in April. Over in the US, economists expect Automatic Data Processing (ADP) to unveil 173,000 job creations in the private sector for the month of May, and ISM services purchasing managers' index (PMI) to rise back above the 50.
The Bank of Canada
The Bank of Canada is expected to cut rates by 25 basis points to 4.75%. A move today from the Bank of Canada (BoC) and a widely tipped cut on Thursday from the European Central Bank (ECB) would put these two central banks among the first big hitters to ease policy in the current cycle. Of course, we shouldn't forget the Swiss National Bank, which cut its rates in March.
WH Smith
WH Smith is on track to deliver FY earnings in line with expectations. In its trading statement, the group says travel revenue in the 13 weeks to June 1st rose 9% and is well-positioned for the summer trading period.
Hewlett-Packard Enterprise
HPE shares rose 11% in extended trading on Tuesday on AI-driven earnings. Hewlett Packard Enterprise forecast third-quarter revenue above Wall Street expectations, helped by upbeat demand for its artificial intelligence servers. For the second quarter, the company reported revenue of $7.20 billion, beating estimates of $6.82 billion.
Oil
Oil prices have settled at a three-month low. Yesterday evening, API inventories revealed declines in crude and gasoline inventories by four million each. Distillate stocks rose by two million barrels.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
