European Markets Are Stable Early on November 7
The United Kingdom’s FTSE 100 Index regained strength last week and rose to record high price levels. The FTSE 100 Index opened the week on a mixed note by closing flat on Monday. It opened higher on Tuesday and traded below the opening prices in the morning session.
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Last week, the market sentiment was strong amid expectations of an interest rate hike by the Bank of England. The Bank of England’s dovish tone following the interest rate hike pushed the pound lower and added positive momentum to the FTSE 100 Index. The market opened higher on Tuesday amid the improved market sentiment in Asian markets. There was weakness in the retail sector amid Next and Marks & Spencer’s weaker-than-expected monthly retail sales data. On the economic data front, according to data released by Halifax Bank of Scotland (HBOS) at 3:30 AM EST today, the U.K. Halifax House Price Index rose 0.3% in October—higher than the expected growth of 0.2%.
At 4:30 AM EST today, the FTSE 100 Index was trading at 7,560.25 with a fall of 0.02%. The iShares MSCI United Kingdom (EWU) rose 0.63% on November 6.
Germany’s DAX Index gained for two consecutive trading weeks and rose to record high price levels. It opened the week on a stable note by closing almost flat on Monday. However, the index opened higher on Tuesday. Due to weakness in the euro and strong market sentiment in Wall Street, Asian markets pushed the DAX Index to fresh record high levels in the morning session. On the economic data front, according to Destatis, Germany’s industrial production fell 1.6% in September—compared to the expected fall of 0.8%.
At 4:40 AM EST today, the DAX Index is trading at 13,505.50 with a gain of 0.27%. The iShares MSCI Germany ETF (EWG) fell 0.15% on Monday.
After rising for three consecutive trading weeks, France’s CAC 40 Index opened this week on a mixed note. It opened higher on Tuesday amid improved sentiment in the banking sector and commodity-related stocks. In the morning session, the CAC 40 Index is stable below the opening prices. The market is looking forward to the release of exports, imports, and trade balance data at 2:45 AM EST on November 8. At 4:45 AM EST, the CAC 40 Index is trading at 5,507.50 with a gain of 0.01%. The iShares MSCI France (EWQ) fell 0.1% on November 6.
In the next part of this series, we’ll discuss how the US Dollar Index and Treasury yields performed in the early hours on November 7.