European Markets Are Stable before Trump’s News Conference
After gaining for nine consecutive trading days, the United Kingdom’s FTSE 100 index is higher in the early hours on Wednesday. At 5:05 AM EST on January 11, the FTSE 100 was trading at 7,289.50—a gain of 0.19%. Apart from the positive sentiment in the market, weakness in the pound is also supporting the rally.
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Recently, Prime Minister Theresa May made comments about the Brexit. The market interpreted her comments as a hint to a “hard-Brexit.” It weakened the pound. Upbeat industrial production data also supported the sentiment. According to data released by the Office for National Statistics, industrial production in the United Kingdom rose 2.1% in November. It’s better than October’s reading of a 1.1% fall and the market’s expectations of a 0.8% rise in November. The iShares MSCI United Kingdom ETF (EWU) rose 0.32% on January 10.
Germany’s DAX index has been consolidating for the past six trading days. In the early hours on Wednesday, the DAX index is hovering at the highest levels since August 2015. At 5:21 AM EST, the DAX index is trading at 11,616.75—a gain of 0.29%. The recently released trade balance report is also supporting the sentiment. According to data released by Statistisches Bundesamt Deutschland, Germany’s trade balance rose to 21.7 billion—more than the forecast of 21.2 billion in November. German exports in November rose 3.9%—the highest increase in more than four years. The iShares MSCI Germany ETF (EWG) fell 0.04% to $26.82 on January 10.
After falling for two consecutive trading days, France’s CAC 40 index is trading higher in the early hours. At 5:30 AM EST on January 11, the CAC 40 index was trading at 4,899.50—a gain of ~0.23%. The market is cautious ahead of Donald Trump’s news conference. The iShares MSCI France ETF (EWQ) fell 0.08% on January 10.