After gaining for two consecutive trading weeks amid improved market sentiment, the United Kingdom’s FTSE 100 Index opened the week on a positive note. After a brief pull back on Tuesday, the FTSE 100 Index rose for two days to the highest levels in a month. On July 21, the FTSE 100 Index started on a stronger note but lost momentum as the day progressed. In the morning session, the FTSE 100 Index traded near opening levels with subdued momentum.
Better-than-expected economic data released on Friday are supporting the FTSE 100 Index. The public sector’s net borrowing rose to 6.9 billion euros in June—higher than the market’s expectation of 4.7 billion euros of net public sector borrowing and also higher than the previous month’s reading of 6.8 billion euros. At 6:25 AM EST on July 21, the FTSE 100 Index was trading at 7,488.50—a rise of 0.02%. The iShares MSCI United Kingdom ETF (EWU) rose 0.44% to $34.04 on July 20.
Germany’s DAX Index gained for two consecutive trading weeks amid improved global sentiment. It opened this week on a weaker note and fell in the first two trading days. It regained strength on Wednesday but resumed its decline on July 20. On Friday, the DAX Index opened the day lower and traded below the opening prices in the morning session. The market is looking forward to major economic releases such as manufacturing data, the non-manufacturing PMI (purchasing managers’ index), and inflation data. The data are scheduled to release next week.
At 6:30 AM EST on July 21, DAX was trading at 12,363.50—a fall of 0.67%. The iShares MSCI Germany ETF (EWG) rose 0.62% on July 20.
After losing strength on Thursday, France’s CAC 40 Index started Friday on a weaker note by opening lower. In the morning session on Friday, the CAC 40 Index was trading with weakness below the opening price levels. The euro rose in the morning session and weighed on European markets. France’s market is looking forward to the release of manufacturing data, the non-manufacturing PMI, 2Q17 GDP data, and inflation data.
In the next part, we’ll discuss how Wall Street performed on July 20.