After a fairly stagnant day yesterday the markets look set to open up today on the back of positive global economic news throughout the night. Japan whose economic growth appeared to slow last quarter was leading the MSCI Asia on the back of machinery orders beating forecasts, MSCI Asia up 0.9%. PM Abe is also considering a cut to Japan’s corporate tax which could further boost prices.
Oil majors could be today’s big movers with Mexico’s President unveiling plans to change the country’s constitution and open up the county’s energy sector to foreign investors. This news should see huge investment in the country itself from companies struggling to find new resources elsewhere.
Perhaps the biggest news of the night was cautious excitement across the global markets that the Eurozone recession could finally be over after a record six straight quarters of recession. Investors wait with baited breath for Wednesday’s results which are forecast to show a 0.2% expansion compared with the first quarter.
Expect the imminent release of today’s CPI figures to be a key driver of UK prices today, missing forecasts last month today’s expectation is 2.8% as opposed to previous 2.9%. Housing prices seeing the largest increase in the last seven years is also generating optimism across the UK market.