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Early Morning Update: DAX Led European Indexes

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Uptick in European indexes

Major European indexes (DBEU) posted significant gains early on June 7, 2016, after the German industrial production numbers beat the market forecasts. The rise was also attributed to the continued investor optimism, as the chances of the Fed hiking rates fell after the weak non-farm payroll numbers on Friday.

 

Specifically, the SPDR Euro Stoxx 50 ETF (FEZ) rose by a significant 1.4% on June 7 at 6:30 AM EST. The German DAX and the French CAC 40 also posted strong gains. DAX rose by 1.7%, and CAC rose by 1.2%. The United Kingdom’s (FKU) FTSE 100 and Sweden’s (EWD) OMX Stockholm 30 rose by 0.55% and 1.5%, respectively. The Russian (RSX) MICEX rose by 0.94%.

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Asian markets react positively as RBA holds rates

Critical Asian indexes (AAXJ) were trading higher on June 7, 2016, after the Reserve Bank of Australia (RBA) decided to keep rates on hold at 1.8%.

 

The Japanese (DXJ) Nikkei 225 rose by 0.58% after leading Japanese indicators suggested a stronger economy in the future. The Indian Index Nifty 50 (INDA) was trading higher by 0.80%. The Chinese (MCHI) DJ Shanghai Index was trading on a flat note with a slight rise of 0.02%.

Looking at the performances of the Oceanic indexes, the Australian (EWA) S&P/ASX 200 remained relatively unchanged, rising by a slight 0.20%. The Dow Jones New Zealand Index (VPL) followed a similar trajectory, as it rose by 0.19%.

US markets pass on positive vibes to Europe and Asia

Now let’s look at how US broad-based indexes fared on June 6, 2016. The S&P 500 VIX Index fell by 4.4%. The S&P 500 Index and the NASDAQ Composite (IXIC) rose by 0.49% and 0.53%, respectively. The Dow Jones Industrial Average also posted gains. It rose by 0.64%. The Asian and European indexes took positive cues from the US markets, and both posted significant gains during early trade on June 7, 2016.

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