Sell-Off in European Markets before the Holiday Weekend
After pulling back on Wednesday, the United Kingdom’s FTSE 100 index opened the day lower and fell to weekly lows on Thursday. The market fell before the long weekend for Good Friday and Easter.
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Except for the technology sector, all of the other sectors fell in the morning session on April 13. The banking and mining sectors led the market decline. The banking sector is weaker as the market awaits quarterly results from Wells Fargo, Citigroup, and JPMorgan Chase. Miners are weaker despite the strength in metals. Weakness in US dollar supported metal prices this morning. Amid geopolitical jitters, the demand for safe-haven assets increased. Gold rose to five-month high price levels and supported major precious metal producers in European markets.
The iShares MSCI United Kingdom ETF (EWU) rose 1.2% on April 11. At 7:05 AM EST on April 13, the FTSE 100 index was trading at 7,306.75—a fall of 0.57%
After a brief recovery on Wednesday, Germany’s DAX index opened lower and traded at the lowest levels in two weeks. President Trump’s comments on the US dollar are weighing on European markets on April 13. The sentiment in the DAX index is also weaker amid geopolitical tensions in Syria and North Korea. In terms of economic releases, the sentiment is mixed this week amid weak inflation reports and strong investor confidence. Germany’s final consumer price index remained unchanged at 0.2% in March. At 7:10 AM EST, the DAX index is trading at 12,111—a fall of 0.37%. The iShares MSCI Germany (EWG) closed the day at $28.4—a gain of 0.21% on April 12.
After a strong pullback on Wednesday, France’s CAC 40 index opened lower and traded at the lowest levels since March 29. There was a sell-off in French markets on April 13 amid the presidential election and geopolitical jitters. At 7:15 AM EST, France’s CAC 40 index moved to 5,070—a fall of 0.53%. The iShares MSCI France ETF (EWQ) rose 0.11% on April 12. In the next part, we’ll discuss how Wall Street performed on April 12.