After declining for three consecutive trading weeks, the United Kingdom’s FTSE 100 Index (UKX-INDEX) started this week on a weaker note. The FTSE 100 Index opened lower on Monday and traded with weakness below opening hours in the early hours.
The FTSE 100 Index declined last week amid the sell-off in the US bond market, which dented the global market sentiment. The FTSE 100 Index declined to seven-week low price levels on Friday amid a pullback in US markets. With dented sentiment and lower Asian markets, the FTSE 100 Index carried forward the weakness this week. In addition to the weak global market sentiment, the weaker-than-expected economic data release also weighed on the FTSE 100 Index on Monday. According to the Chartered Institute of Purchasing and Supply, January’s U.K. services PMI (purchasing managers’ index) declined to 53—less than the forecast of 54.1.
At 5:00 AM EST today, the FTSE 100 Index was trading at 7,366.50—a drop of 1.0%. The iShares MSCI United Kingdom (EWU) declined 2.4% to 36.27 on February 2.
Germany’s DAX 30 (DAX-INDEX) Index declined for two consecutive trading weeks and opened this week lower. The dented global risk appetite and concerns about inflation are weighing on the DAX 30 Index. After a disappointing daily start today, the DAX 30 Index started to rebound following the release of stronger-than-expected economic data. According to Markit Economics, Germany services PMI surged to 57.3 in January—higher than the forecast of 57.
At 5:05 AM EST on February 5, the DAX Index was trading at 12,728.08—a drop of 0.45%. The iShares MSCI Germany (EWG) fell 2.4% on February 2.
France’s CAC 40 (PX1-INDEX) Index broke a four-week gaining streak last week amid the decreased risk appetite. The sell-off accelerated on Monday as President Emmanuel Macron’s party lost in by-elections for parliamentary seats over the weekend. The increased sell-off in global markets and weakness in European markets are weighing on the CAC 40 Index. On the economic data front, according to Markit Economics, France’s services PMI declined to 59.2 in January.
At 5:10 AM EST today, the CAC 40 Index was trading at 5,323.50—a drop of 0.77%. The iShares MSCI France (EWQ) fell 2.8% on February 2.
Next, we’ll discuss how US markets performed in the week ending February 2.