European Markets Are Strong in Early on October 3
After rising for two consecutive trading weeks, the United Kingdom’s FTSE 100 Index started this week on a stronger note. The market rose to almost two-month high price levels on Monday. The FTSE 100 Index is stable at elevated levels in the morning session on October 3, 2017.
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The market sentiment improved last week after President Trump announced the tax cut proposal. Weakness in the pound due to a downward revision of the United Kingdom’s GDP added to the upward movement. The United Kingdom’s weaker-than-expected manufacturing data were released on Monday. The pound weakened and boosted the FTSE 100 Index. According to the Chartered Institute of Purchasing and Supply, the United Kingdom’s construction PMI (purchasing managers’ index) fell to 48.1 in September. It’s the lowest reading in 14 months and lower than the forecast of 51.0.
The market is looking forward for the United Kingdom’s services PMI data that are scheduled to release at 4:30 AM EST on October 4.
Germany’s DAX Index rose for four consecutive trading weeks and started this week on a stronger note. The market rose to all-time high price levels on Monday as the euro weakened. Clashes during the independence referendum in Catalonia weakened the euro. Germany’s market is closed today for “Unification Day.” The market is looking forward to the release of Germany’s services PMI at 3:55 AM EST on Wednesday. On Monday, the DAX Index closed the day at 12,902.65—a gain of 0.58%. On October 2, the iShares MSCI Germany ETF (EWG) fell ~0.25%.
After rising for three consecutive trading weeks, France’s CAC 40 Index started this week stronger. Carrying forward the strength, the CAC 40 Index opened higher on Tuesday and traded at the highest levels since May 16 in the morning session. The improved market sentiment and the weak euro supported the CAC 40 Index. At 6:00 AM EST, the index was trading at 5,299.30—a rise of 0.10%. The iShares MSCI France (EWQ) fell 0.23% on October 2.
In the next part, we’ll discuss how commodities performed in the early hours on October 3.