European markets are down heading into lunch as disappointing data comes out of Germany and the Eurozone, while US Index futures are up pre-open ahead of manufacturing data.
Germany’s leading index, DAX 30, is down 0.29% (27.44 points) at 9,315.50. The day’s biggest loser is chemicals and industrial materials processor Lanxess AG (LXS.DE), currently down 1.99% at 53.55 on disappointing earnings posted at Friday’s close. Fueling the downside momentum is manufacturing and services purchase managers index (PMI) data, both of which missed expectations, coming in at 53.8 and 54.0 respectively. Similarly, the Eurozone equivalents of these data missed expectations, with manufacturing PMI reported at 53. Flat and services PMI reported at 52.4.
The FTSE 100 is currently trading at 6,550.89, a 0.10% discount to index’s daily open. Weighing down on the index is British Airway’s parent International Airlines Group (IAG.L), trading at 412.10, a 2.02% discount to the open despite positive earnings reports early on Monday.
Across the pond, US index futures are looking strong as the US open approaches. S&P 500 futures are up 0.25% at 1,861.95 and NASDAQ 100 futures are up 0.35% at 3,651.70.
The boost in these indices comes as traders and investors look to the US manufacturing PMI release for insight into the industry. After a spate of positive data from the US last week, with employment, output and industrial production all coming out better than expected, expiations of a better than expected PMI release are high. A validation of this bias would hint at further strength in the US equities markets as the day goes on, and likely heading into the middle of the week.
The more risk averse investors will likely also have one eye on the situation in Crimea. The Russian military has now effectively taken control of the region, storming Ukrainian bases and forcing domestic troops back to mainland Ukraine. The action has sparked the trading of sanctions between Europe, the US and Russia, which could exert downside pressure on the market as the week matures.
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