European markets continue upward trend
The major European indexes (DBEU) extended their gains from the previous day on May 25, 2016. The rise was primarily attributed to the strong release of German data.
Specifically, the SPDR Euro Stoxx 50 ETF (FEZ) was trading 1.5% higher at 9:30 AM ET. The German DAX and the French CAC 40 were also trading with a positive bias. They rose by 1.4% and 1.0%, respectively.
The gains in non-Eurozone countries were compounded. The United Kingdom’s (FKU) FTSE 100 was trading 0.57% higher. Sweden’s (EWD) OMX Stockholm 30 rose by 0.65%. The Russian (RSX) MICEX index posted decent gains as it rose by 1.1%.
German data strong, but Italian industrial numbers disappoint
The business confidence indexes published by German market research firms GFK and IFO came out above market expectations. The GFK business consumer confidence in May rose to 9.8 against the forecast of 9.6.
The IFO business climate for May rose to 107.7 against the forecast of 107. The IFO expectation rose to 101.6, while IFO current conditions came out at 114.2.
This rise was evident across all major sectors, with the construction sector rising to the highest level since 1991. The manufacturing sector rose for the third consecutive month. Among other European data, the month-over-month Italian industrial orders and sales were reported below forecasts, as they fell by 3.3% and 1.6%, respectively.