European Markets Are Weak Early on December 5
The United Kingdom’s FTSE 100 Index started this week on a stronger note despite pulling back last week. Following a strong performance on Monday, the FTSE 100 Index opened higher on Tuesday and traded near the opening prices in the morning session.
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The market sentiment was strong at the beginning of this week amid Brexit talks and progress in US tax reform plans. Stronger-than-expected construction activity data also added strength to the market. According to the Chartered Institute of Purchasing and Supply, the United Kingdom’s construction PMI (purchasing managers’ index) rose to 53.1 in November, which is stronger than the forecast of 51.0. On Tuesday, with the improved market sentiment, the FTSE 100 Index opened higher but lost strength amid the tech sell-off in the US and the United Kingdom’s weaker-than-expected services data. The United Kingdom’s services PMI fell to 53.8 in November, which is below the forecast of 55.
At 5:50 AM EST today, the FTSE 100 Index was trading at 7,340.75—a gain of 0.02%. The iShares MSCI United Kingdom (EWU) fell 0.31% on December 4.
After starting this week on a stable note, Germany’s DAX Index lost strength on Tuesday. The US tech sell-off along with weaker-than-expected services data weighed on the DAX Index in the morning session. According to data released by Markit Economics, Germany’s services PMI fell to 54.3 in November, which is weaker than the expected reading of 54.9.
At 5:55 AM EST, the DAX Index was trading at 12,977.50—a fall of 0.62%. The iShares MSCI Germany (EWG) rose 0.33% on December 4.
Following a strong performance on Monday, France’s CAC 40 Index started Tuesday lower. Despite the release of stronger-than-expected services PMI data, the France CAC 40 Index is trading with weakness in the morning session. According to Markit Economics, France’s services PMI rose to 60.4 in November, which is higher than the forecast of 60.2.
At 6:00 AM EST, the CAC 40 Index was trading at 5,355.80 with a fall of 0.62%. The iShares MSCI France (EWQ) rose 0.26% on December 4.
In the next part, we’ll discuss how US markets performed on December 4.