European Markets Are Stable amid Manufacturing PMI Data
After closing flat on Thursday, the United Kingdom’s FTSE 100 tried to regain strength but failed to move higher. It traded with weakness in the morning session on April 21. The risk appetite in the European markets is weaker this week amid Prime Minister Theresa May’s call for snap general elections and France’s presidential election. Today, the United Kingdom’s market was also pressured by weaker economic data.
Interested in DAX-INDEX? Don't miss the next report.
Receive e-mail alerts for new research on DAX-INDEX
According to data released by the Office for National Statistics, the United Kingdom’s retail sales in March fell 1.8% compared to retail sales in February. The market expected a fall of 0.2%. On the other hand, the market is looking forward to the United Kingdom’s GDP scheduled to release next week. The iShares MSCI United Kingdom ETF (EWU) rose 0.34% on April 20. At 6:50 AM EST on April 21, the FTSE 100 index was trading at 7,110.90—a fall of 0.11%.
After regaining strength on Thursday, Germany’s DAX index is trading positive in the morning session on Friday. The market is supported by Germany’s stronger-than-expected manufacturing PMI (purchasing managers’ index) data. According to data released by Markit economics, Germany’s manufacturing PMI rose to 58.2 in April, which is higher than the expected value of 58. On the other hand, the Eurozone manufacturing PMI rose to 56.8—the highest reading since May 2011. At 6:55 AM EST, the DAX index was trading at 12,035.50—a gain of 0.07%. The iShares MSCI Germany (EWG) closed the day at $28.34—a gain of 0.68% on April 20.
After a strong performance for two consecutive trading days, France’s CAC 40 index opened the day lower and traded with weakness amid the Paris attacks. However, losses were pared by France’s stronger-than-expected manufacturing PMI at 55.1 in April. On the other hand, the market is bracing for the first round of France’s presidential election on Sunday. At 7:00 AM EST, France’s CAC 40 index moved to 5,061.50—a fall of 0.35%. The iShares MSCI France ETF (EWQ) rose 1.8% on April 20. In the next part, we’ll discuss how Wall Street performed on April 20.