European Markets Are Mixed, Markets Await French Elections
After falling for four consecutive trading days and reaching the lowest levels since February 1, the United Kingdom’s FTSE 100 index opened lower on Thursday. It traded with weakness in the morning session. In European markets, participants’ risk appetite was lower due to France’s upcoming elections and geopolitical tension between North Korea and the US.
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The United Kingdom’s market fell since Prime Minister Theresa May announced snap general elections. The snap general elections will be held on June 8. The market is looking forward to first quarter earnings reports scheduled to release this month. The market is also facing pressure from the strengthening pound amid increased expectation of majority for the Conservative party. The market is also waiting for Bank of England Governor Mark Carney’s speech scheduled at 11:30 AM EST today.
The iShares MSCI United Kingdom ETF (EWU) fell 0.77% on April 19. At 6:20 AM EST on April 20, the FTSE 100 index was trading at 7,102.90—a fall of 0.16%.
After regaining some strength on Wednesday, Germany’s DAX index opened the day lower and traded close to yesterday’s close. On the economic releases front, Destatis released Germany’s PPI (producer price index) data at 2:00 AM EST today. According to the report, Germany’s PPI in March didn’t change. The market was expecting growth of 0.01%. At 6:30 AM EST, the DAX index was trading at 12,012.00—a fall of 0.02%. The iShares MSCI Germany (EWG) closed the day at $28.15—a fall of 0.35% on April 19.
After regaining strength and reclaiming the 5,000 price level on Wednesday, France’s CAC 40 index is trading above the 5,000 price level. The market regained strength on Thursday due to supporting earning releases from companies like Publicis Groupe and Schneider Electric. The market is waiting for the first round of France’s presidential elections scheduled for April 23. At 6:35 AM EST, France’s CAC 40 index moved to 5,040.80—a gain of 0.74%. The iShares MSCI France ETF (EWQ) fell 0.04% on April 19. In the next part, we’ll discuss how Wall Street performed on April 19.