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.
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