Market Buzz: Investors look to EU and US for drivers

Following losses on US floors and negative sentiment in Asia, Russian stocks started off Wednesday in the red. Later in the day, investors will be looking for drivers in news from Europe and the US.

Russian floors closed Tuesday’s trading session with slightly
gains: The MICEX advanced 0.3 percent to 1341.62 and the RTS was
up 0.26 percent to 1322.39.

Stock markets in Europe ended Tuesday higher, rebounding after
traders strengthened their positions ahead of hotly anticipated
data from the US later this week. The UK’s FTSE 100 added 0.51
percent to close at 6,558.58 points, while Germany’s DAX 30 drew
0.12 percent to 8,295.96 points and the French CAC 40 gained 0.13
percent to end at 3,925.83.

The eurozone will release official data on retail sales on
Wednesday, with Germany, Italy, France and the eurozone as a
whole releasing service sector PMI reports. Germany’s PMI
indicator is expected to remain unchanged from April’s level of
49.8 points. The eurozone’s PMI is also not expected to change at
47.5 points.

US stocks closed lower Tuesday amid continuing worries over the
future of the Fed’s bond-buying policy. The Dow Jones slumped
0.50 percent to 15,177.54 points, the S&P 500 closed down
0.55 percent at 1,631.38 points. And the Nasdaq lost 0.58 percent
to close at 3,445.26 points.

On Wednesday, the US will release the ADP nonfarm payroll report
on private-sector job creation. Today’s report will be a preview
of Friday’s official payroll update from the government, and will
be closely analyzed for improvements over the previous raft of
disappointing economic news.

US government updates on factory orders and crude oil reserves
are scheduled for release on June 5. The Institute of Supply
Management will also release a report on US service-sector
activity (ISM PMI), a leading economic indicator that is expected
to help drive market growth.

Asian stocks traded mostly lower on Tuesday as investors slashed
equity amid growing concerns over the rumored end to the US Fed’s
bond-buying program. Japan’s Nikkei 225 slid 1.8 percent to
13,295.89, signaling disappointment over Prime Minister Shinzo
Abe’s vague unveiling of the next stage of his anti-deflation
‘Abenomics’ program.

Hong Kong’s Hang Seng fell 1 percent to 22,048.84, while South
Korea’s Kospi declined 1.1 percent to 1,968.52. Australia’s
S&P/ASX 200 dropped 1 percent. Benchmarks in Singapore,
Indonesia, Thailand and the Philippines also fell. Shares in
Mainland China traded mixed.

Brent oil is currently trading slightly lower at $102.80, down
0.03 percent. WTI is in the black, up 0.1 percent to $93.

This article originally appeared on: RT