After starting this week on a weaker note, the United Kingdom’s FTSE 100 index fell in the first three trading days this week. On June 15, it opened the day lower and fell in the morning session.
There was decreased risk appetite in European markets after the Fed increased interest rates on June 14. Amid rising inflation, the market is looking forward to the Bank of England’s interest rate decision and meeting minutes. The FTSE 100 index is weaker this week amid political uncertainty. Weaker-than-expected economic data released in the morning session on June 15 weighed on the markets. According to data released by the Office for National Statistics, the United Kingdom’s retail sales fell 1.2% in May—worse than the expected slowdown of 0.8%. At 6:25 AM EST on June 15, the FTSE 100 index was trading at 7,418.75—a fall of 0.75%. The iShares MSCI United Kingdom (EWU) fell 0.26% and closed at 34.14 on June 14.
After losing momentum on Wednesday, Germany’s DAX Index has been weaker since the early hours on June 15. Weakness in the resource and retailers sectors weighed on the DAX Index. Also, the Eurozone’s weaker-than-expected trade balance data dented the sentiment. According to data released by Eurostat, the Eurozone’s trade balance fell to 17.9 billion euros—less than the forecasted trade balance value of 27.2 billion euros. At 6:30 AM EST, the DAX Index was trading at 12,670.5—a fall of 1.1%. The iShares MSCI Germany (EWG) rose 0.38% and closed at 31.45 on June 14.
Similar to other European indices, France’s CAC 40 index fell in the morning session on June 15 amid the Fed’s interest rate hike. The weaker-than-expected CPI (consumer price index) also weighed on the CAC 40 Index. According to data released by the French National Institute for Statistics and Economic Studies, France’s CPI in May remained unchanged, while the market forecasted growth of 0.1%. At 6:35 AM EST, the CAC 40 Index was trading at 5,187—a fall of 1.1%. In the next part, we’ll discuss Wall Street’s performance on June 14.