European Stocks Called Modestly Lower as Investors Pause Amid Global Rally
European stocks are likely to slip modestly at the opening bell as markets around the world retreat from record highs following Apple Inc.'s (AAPL) - Get Report gala iPhone launch in California which rippled through the global tech industry.
Britain's FTSE 100 is once again expected to be held down by the surging pound, which traded at a near one-year high of 1.3302 against the U.S. dollar overnight after faster-than-expected August inflation data Tuesday increased bets on possible intervention at the Bank of England's next rate meeting Thursday.
Around Europe, however, a modestly softer single currency should provide some support for equities, but opening calls from financial bookmakers IG suggest investors may use yesterday's Apple event in Cupertino, California as a catalyst for profit-taking after three consecutive session gains.
Germany's DAX performance index is expected to slip around 0.13% at the start of trading while France's CAC-40 is looking at a smaller 0.07% decline. The SMI benchmark in Switzerland, however, which is heavily-weighted with defensive stocks in the healthcare and pharamceuticals sector, is called to open around 0.1% higher.
Overnight in Asia, stocks once again touched a ten-year high in the early session after all three U.S. benchmarks notched record closing levels on Wall Street Tuesday, with the region-wide MSCI Asia ex-Japan index marked 0.08% higher at the start of European trading.
The dollar was little-changed in Asia trade, owing to a lack of headline economic or political drivers, and that kept regional currencies largely in check, including the yen, which traded at around 110.03 against the greenback and provided support for the benchmark Nikkei 225, which added 0.55% to yesterday's close and looks to re-test the 20,000 barrier in the coming days.
Global oil prices were under modest pressure in overnight trading after private sector data showed that U.S. crude inventories rose by a more-than-expected 6.2 million barrels in the week ending Sept. 8, dispelling concerns that Hurricane Harvey had hampered drilling installations in and around the Gulf region.
West Texas Intermediate crude futures for October delivery were marked 8 cents per barrel lower at $48.19 while Brent contracts for November, the global benchmark, were seen 13 cents lower at $54.10
U.S. equity futures are indicating little change for the three benchmark indices at the start of trading on Wall Street today, suggesting investors could again test another session of triple record highs after Tuesday's bullish trading.
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