City A.M. TV: A Market Snapshot
Many key global equity markets have been tracking sideways, consolidating their gains in recent weeks.
The S&P500, for example, has moved within a range of 4,100 to 4,230 for most of the past six weeks; the DAX has trended sideways since early April; while the UK’s FTSE 100 (key large cap index) has behaved similarly since mid-April. Over the past two weeks, those indices have rallied back to the top end of those ranges. As such its decision time for many key global equity markets. Will they break out to the upside and start a new uptrend? Or will these indices fail at these key resistance levels. The message of the short term market timing models, in that respect, is not encouraging (see video for detail).
There are many key macro data and events this week. In particular it’s the key week of the month for US economic data starting with the ISM manufacturing data published later today (3pm), and then the service sector equivalent index later this week (i.e. ISM non-manufacturing on Thursday at 3pm). US employment data is also out on Friday (1:3opm UK time). Across the globe, May service sector PMI data is published on Thursday.
There is also a G7 Finance Ministers meeting in London at the end of this week, as well as the Bank for International Settlements’ ‘Green Swan’ conference later this week, discussing “How in practice can the financial sector take immediate action against climate change-related risks?”. The list of speakers includes various key current and former central bank governors amongst many others.