European Markets Are Mixed, United Kingdom Awaits 2017 Budget
After falling for four consecutive trading days, the United Kingdom’s FTSE 100 index is stable in the morning session on Wednesday. The market is looking forward to the spring budget scheduled to release today.
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Philip Hammond, the United Kingdom’s Chancellor of the Exchequer, will announce the budget statement on March 8. Earlier, Hammond commented about his plans to bring fiscal discipline amid Brexit. The market is expecting reforms for small businesses, increased funding for social care, and a boost for vocational studies. A boost of one billion British pounds is expected for social care. Also, the growth outlook for 2017 is expected to increase. The budget announcement is scheduled to release at 7:30 AM EST.
The iShares MSCI United Kingdom ETF (EWU) fell 0.69% on March 7. At 5:40 AM EST on March 8, the FTSE 100 index was trading at 7,342.80—a gain of 0.05%.
After consolidating for two consecutive trading days, Germany’s DAX index regained strength and traded above 12,000. The sentiment in the German markets is stronger despite weaker factory orders data. According to data released on March 7, Germany’s factory orders fell 7.4% in January—higher than the expected 2.5% fall. According to Destatis, Germany’s industrial production rose 2.8% in January. At 5:50 AM EST, the DAX index is trading at 12,001.02—a gain of 0.3%. The iShares MSCI Germany (EWG) closed the day at $27.72—a fall of 0.4% on March 7.
After falling for two consecutive trading days, France’s CAC 40 index is weaker on Wednesday. According to data released by the Ministry of Finance, France’s trade balance fell by 7.9 billion euros in January—more than the expected fall of 3.7 billion euros. At 5:55 AM EST, France’s CAC 40 index moved to 4,949.27—a fall of 0.11%. The iShares MSCI France ETF (EWQ) fell 0.82% on March 7. In the next part, we’ll see how Wall Street performed on March 7.