European Markets Are Stable in October 11 Morning Session
Following a three-week-long rally, the United Kingdom’s FTSE 100 Index started this week stable. The market opened higher on Wednesday, October 11, trading near record-high levels.
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The market sentiment was mixed at the beginning of this week due to weak China services PMI (Purchasing Managers’ Index) data and the strength of the pound. But the market regained momentum on October 10, 2017, amid strong construction output and industrial and manufacturing production data. According to the Office for National Statistics, the United Kingdom’s manufacturing production and industrial production improved 2.8% and 1.6% YoY (year-over-year), respectively, in August. That’s better than the growth of 1.9% and 0.80% in manufacturing and industrial production, respectively, expected by the market. The market focus is on Brexit talks and US FOMC (Federal Open Market Committee) meeting minutes.
At 6:40 AM EST on October 11, the FTSE 100 Index was trading at 7,536.25, a fall of 0.03%. The iShares MSCI United Kingdom (EWU) rose 1.2% on October 10.
Germany’s DAX index rallied higher for five consecutive trading weeks and reached record high levels in the past week. It opened this week stronger by surging to fresh record highs but lost momentum as the week progressed. The market is also supported by strong German exports, imports, and trade balance data released on October 10, 2017. The market opened higher today and was stable with opening prices in the morning session. At 6:45 PM EST on October 10, the DAX was trading at 12,959.00, a rise of 0.08%. On October 10, the iShares MSCI Germany ETF (EWG) rose ~0.71%.
After gaining for four consecutive trading weeks, France’s CAC 40 Index started this week on a mixed note. Market sentiment was mixed amid political uncertainties in the Catalonia region. But the sentiment improved on Wednesday, October 11, amid easing of worries over Catalonia’s independence. At 6:50 AM EST, the index was trading at 5,360.00, a fall of 0.06%. The iShares MSCI France (EWQ) rose 0.97% on October 10. In the next part of this series, we’ll see how the US Dollar Index and U.S. Treasury yields performed early on October 9.