After rising to the highest levels in two weeks, the United Kingdom’s FTSE 100 Index started Thursday on a stable note. In the morning hours on July 13, the FTSE 100 Index was stable and trading above opening hours.
Fed Chair Janet Yellen’s not so hawkish stance on interest rate hikes improved the market sentiment. On Wednesday, the United Kingdom’s stronger-than-expected economic data supported the market. On the other hand, the pound’s strength is weighing on the FTSE 100 Index. The stronger-than-expected Claimant Count, unemployment rate, and average earnings strengthened the pound. It also gained strength amid expectations about the European Central Bank’s asset purchase program.
At 6:40 AM EST on July 13, the FTSE 100 Index was trading at 7,428.25—a gain of 0.15%. The iShares MSCI United Kingdom ETF (EWU) rose 1.1% to $33.41 on July 12.
Germany’s DAX Index regained strength on Wednesday and rose to two-week high price levels. On Thursday, the DAX Index is trading with strength in the morning amid improved market sentiment. Inflation data released today were in line with market expectations and supported the market. According to the Federal Statistical Office Germany, the German consumer price index rose 0.2% in June, in line with analysts’ expectations.
At 6:45 AM EST on July 13, DAX was trading at 12,656.50—a rise of 0.23%. The iShares MSCI Germany ETF (EWG) rose 0.65% and closed at $30.85 on July 12.
France’s CAC 40 Index rose on Wednesday after Yellen’s testimony. Her dovish comments improved the sentiment in European markets. On July 13, the CAC 40 Index started higher amid improved sentiment and traded with strength in the morning session. At 6:50 AM EST, the CAC 40 Index was trading at 5,257.80—a rise of 0.68%.
In the next part, we’ll discuss Wall Street’s performance on July 12.