US Stocks Are Expected to Continue to Grow
The global stock markets are continuing their gradual recovery from the sell-off earlier in the year. US stock markets are awaited to open a little higher again today, as political tension in Europe has eased. European stock markets were mostly higher, despite data showing another slowdown in business activity in the Eurozone last month. IHS Markit's composite purchasing managers' index (PMI), seen as a good overall indicator of the Eurozone growth, dropped to 54.1 in May from April 's 55.1 and marked an 18-month low.
The British pound gains ground after Services PMI data. Activity in the UK service sector picked up at the fastest pace in three months in May, continuing to recover from March’s recent low. Research firm Markit said its services purchasing managers’ index rose to 54.0 in May from 52.8 in April, compared to forecasts for a reading of 52.9.
Service sector activity in the US will focus investor attention today, as the Institute of Supply Management (ISM) releases its non-manufacturing purchasing managers' index. Growth is expected to accelerate to 57.9 for May, from the previous reading of 56.8.
Also, the US Bureau of Labor Statistics survey to measure job vacancies for April could garner added investor attention following last week's blowout jobs report. The US Labor Department's Job Openings and Labor Turnover Survey (JOLTS) expected to show job openings in March fell to about 6.490 million.