European Markets Are Weaker on August 10
The United Kingdom’s FTSE 100 Index started this week on a stronger note and rose to the highest close in ten weeks on Tuesday. On Wednesday, it fell and closed below the important level of 7,500 amid the lower global risk appetite. On Thursday, the FTSE 100 Index opened the day lower and traded at the lowest levels in a week in the morning session.
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The market sentiment is weak amid geopolitical tensions between North Korea and the US. On Thursday, weakness in homebuilder stocks also increased selling in the market. The weaker-than-expected construction output and a slowdown in housing prices’ growth weighed on homebuilders. On the economic data front, according to the Office for National Statistics, the United Kingdom’s trade balance fell by 12.72 billion pounds in June—a bigger fall than the market’s forecast of 11 billion pounds.
At 6:20 AM EST on August 10, the FTSE 100 Index was trading at 7,416.50—a fall of 1.1%. The iShares MSCI United Kingdom ETF (EWU) rose 0.09% to $34.25 on August 9.
Germany’s DAX Index started this week on a weaker note by pulling back on Monday. On Tuesday, the DAX Index rebounded amid supporting trade balance data and improved market sentiment. On Wednesday, it fell and closed below 12,200—it carried the weakness to Thursday. In the morning hours on August 10, the DAX Index is trading with weakness at the lowest levels since April 21. At 6:25 AM EST on August 10, DAX was trading at 12,069.25—a fall of 0.7%. The iShares MSCI Germany ETF (EWG) fell 0.49% on August 9.
After gaining for four consecutive trading days, France’s CAC 40 Index fell on Wednesday and carried the weakness to Thursday. In the morning session on Thursday, the CAC 40 Index is trading with weakness amid dented global sentiment and weaker-than-expected economic data. According to the data reported by INSEE, France’s industrial production fell 1.1% in June—a bigger fall than the market’s expectation of a 0.5% decline.
At 6:30 AM EST on August 10, the CAC 40 Index was trading at 5,133.50—a fall of 0.24%.
In the next part, we’ll discuss how Wall Street performed on August 9.