European Markets Are Mixed Early on October 5
After rising for five consecutive trading days, the United Kingdom’s FTSE 100 Index’s rally paused on Wednesday. On Thursday, the FTSE 100 Index opened on a stable note and traded above the opening prices in the morning session.
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After a strong performance for two weeks, the FTSE 100 Index started this week on a stronger note. The improved global market sentiment and weakness in the pound supported the FTSE 100 Index. However, investors’ overall sentiment is weak amid concerns about Brexit negotiations. On Thursday, the market was supported by the rise in Merlin Entertainments, which rose due to news of its plan to invest in Seaworld. On the economic data front, according to the Bank of England, the United Kingdom’s housing equity withdrawal fell by 4.1 billion pounds in 3Q17. The market was expecting a fall of 9.9 billion pounds.
At 6:30 AM EST, the FTSE 100 Index is trading at 7,481.75—a gain of 0.2%. The iShares MSCI United Kingdom (EWU) rose 0.09% on October 4.
After rising for seven consecutive trading days and closing at record high price levels, Germany’s DAX Index pulled back on Thursday. The DAX Index opened lower on October 5 and traded with weakness in the morning session. Profit-booking along with the market’s weak risk appetite weighed on the DAX Index. With no major economic releases today, the market is looking forward to the release of August’s German factory orders on Friday.
At 6:35 PM EST, the DAX Index was trading at 12,942.00—a fall of 0.22%. On October 4, the iShares MSCI Germany ETF (EWG) rose ~0.03%.
After breaking the six-day rising streak on Wednesday, France’s CAC 40 Index started Thursday on a mixed note. The market fell on Wednesday amid political uncertainty in the Catalonia region. In the morning session today, the market is stable as its digests the political uncertainty. At 6:40 AM EST, the index was trading at 5,361.00—a fall of 0.04%. The iShares MSCI France (EWQ) fell 0.13% on October 4.
In the next part, we’ll discuss how US markets performed on Wednesday.