European Markets Are Weak Early on September 15
After pulling back last week amid geopolitical concerns, the United Kingdom’s FTSE 100 Index started this week on a stronger note but didn’t retain its strength. After a positive start this week, the FTSE 100 Index fell in the next three trading days. On Friday, the market started on a weaker note and traded at a fresh four-month low in the early hours.
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Since North Korea didn’t test a missile last weekend as market participants expected, the global market sentiment started to recover at the beginning of the week. Hurricane Irma’s downgrade increased the risk appetite. Weakness in the resources sector amid copper pulling back weighed on the FTSE 100 Index this week. On Friday, the market is weak due to a rise in the pound after the Bank of England’s interest rate meeting. Amid increased expectations of an interest rate hike by the Bank of England, the pound rose and weighed on the market.
At 6:35 AM EST, the FTSE 100 Index is trading at 7,203.50—a fall of 1.3%. On September 14, the iShares MSCI United Kingdom (EWU) rose 0.44% and closed at 34.51.
Germany’s DAX Index rose for seven consecutive trading days but pulled back on Thursday amid the decreased risk appetite. On Friday, the market started lower amid North Korea’s missile launch over Japan. However, the market regained strength as Asian markets shrugged off North Korea. Weakness in commodities is weighing on resource stocks in the morning session. At 6:40 AM EST, the DAX Index was trading at 12,531.50—a fall of 0.07%. On September 14, the iShares MSCI Germany ETF (EWG) rose ~0.22%.
After rising in the first four trading days this week, France’s CAC 40 Index opened with a mixed sentiment on Friday. Amid the dented market sentiment in European markets on Friday, the CAC 40 Index opened the day positive but lost strength as the day progressed. At 6:45 AM EST, the index was trading at 5,221.25—a fall of 0.08%. The iShares MSCI France (EWQ) rose 0.42% on September 14.
In the next part, we’ll discuss how Wall Street performed on September 14.