US Markets Look To Yellen For Direction

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US Markets Look To Yellen For Direction

US Markets Look To Yellen For Direction

European markets are up on mixed data while US stock market futures are up ahead of the Yellen’s latest speech, hinting at a bullish day across the board.

In the UK, the FTSE 100 is currently trading at 6,627.39, a 39.07 (0.59%) gain on the day’s open. The day’s biggest gainer, so far, is defence engineering organisation Babcock International Group plc (BAB.L), currently trading at 1,357.00, a 5.03% gain on the day’s open. The gain comes as the conglomerate announces plans to acquire emergency healthcare helicopter operator Avincis.

The gains come as the UK reports mixed low impact data, with consumer credit mixing expectations at 0.70B, reported at 0.55B; mortgage approvals missing expectations at 75K, reported at 70K; and mortgage lending beating expectations at 1.60B, reported at 1.70B.

In Germany, the DAX 30 is up 0.4% on the open, currently trading at 9,591.31. Propping the index up is cement provider HeidelbergCement AG (HEI.DE), up 1.92% at 62.26 on better than expected cement sales estimates.**relatedarticle**

In the US, stock market futures have mirrored Friday’s trading to gain across the board. S&P 500 futures (June 14) are currently trading for 1,857.15, a 0.36% gain on the open. Similarly, NQ 100 stock market futures (June 14) are up 0.45%, currently trading at 3,579.20.

While not a foolproof indication, when the US stock market futures trade upside pre-open, it suggests the upside momentum may continue at least into the US morning session.

Looking fundamentally, traders and investors will look to some key events during the US morning to offer up a directional bias. Chicago PMI data is set for release a short while after the US markets open, which consensus forecasts at 59.0, a small decline of the previous release of 59.8.

Shortly after, Fed Chair Janet Yellen is set to speak, an event which will undoubtedly move the markets. A dovish tone could compound the stock market futures momentum and drive the markets higher as the day matures.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com