European markets are weaker in the morning session on May 3. After a brief recovery on Tuesday, the United Kingdom’s FTSE 100 opened lower and traded with weakness on May 3.
The United Kingdom’s market opened lower today amid a fall in ITV and Sainsbury’s. ITV is a commercial TV network in the United Kingdom. It fell as low as 2% in the early hours amid its chief executive, Adam Crozier, stepping down. Sainsbury’s, the second-largest supermarket chain in the United Kingdom, fell 4% in the morning session amid an 8% fall in its fiscal profits.
United Kingdom’s economic releases
The United Kingdom’s construction activity picked up unexpectedly in April. According to data released by CIPS, the United Kingdom’s construction purchasing managers’ index rose to 53.1 in April—the highest level in the past five months. The market was expecting a reading of 52. According to Markit, the United Kingdom recorded the sharpest rise in construction output since 2007 in April. However, economic data didn’t support the market in the morning session.
The iShares MSCI United Kingdom ETF (EWU) rose 0.72% on May 2. At 5:55 AM EST on May 3, the FTSE 100 index was trading at 7,228.25—a fall of 0.3%.
After rising and closing at record high levels on Tuesday, Germany’s DAX index is slightly weaker in the morning session. There’s lower risk appetite in European markets ahead of the Fed’s interest rate policy statement and France’s presidential election. On the economic data front, according to data reported by Destatis, Germany’s unemployment change fell by 15,000 in April. At 6:05 AM EST, the DAX index was trading at 12,478.5—a fall of 0.24%. The iShares MSCI Germany (EWG) closed the day at $29.97—a gain of 0.33% on May 2.
After rising to nine-year high price levels on Tuesday, France’s CAC 40 index is slightly weaker in the morning session. The market is looking forward to Marcon and Le Pen’s pre-election TV debate today. At 6:15 AM EST, France’s CAC 40 index moved to 5,285.30—a fall of 0.36%. The iShares MSCI France ETF (EWQ) rose 0.89% on May 2.
In the next part, we’ll discuss how commodities performed in the early hours on May 3.