After pulling back last week, the United Kingdom’s FTSE 100 Index (UKX-INDEX) opened higher on Monday and traded with strength above opening prices in the morning session.
Following a sell-off on Friday, the market started to rebound despite several factors like trade war concerns and uncertainty about interest rate hikes. There was strength in the market before the release of the United Kingdom’s February services PMI (purchasing managers’ index) data. The market expects the services PMI to increase to 53.3 from 53 recorded in January. Bargain hunting at lower price levels following last week’s sell-off is supporting the FTSE 100 Index in the early hours. Weakness in the pound is also supporting the market.
At 3:45 AM EST today, the FTSE 100 Index was trading at 7,099.00—a gain of 0.41%. The iShares MSCI United Kingdom (EWU) rose 0.23% to $34.37 on Friday.
Following a strong decline last week, Germany’s DAX 30 Index opened lower on Monday. Concerns about the US-led trade war amid the announcement of tariffs on metals like aluminum and steel weighed on the DAX Index in the opening hours on Monday. Following the weak opening, the DAX Index consolidated and started to recover its losses ahead of the release of Germany’s services PMI data. According to Markit Economics, Germany’s services PMI increased to 57.6 in February, which is better than the forecast of 57.4.
At 4:00 AM EST on March 5, the DAX Index was trading at 11,969.59—a gain of 0.47%. The iShares MSCI Germany (EWG) closed flat on Friday.
After declining last week and closing at two-week low price levels, France’s CAC 40 Index (FCHI) opened lower on Monday. Higher chances of a hung parliament following Italy’s parliamentary elections and concerns about a US-led trade war weighed on the CAC 40 Index in the opening hours. However, the market started to recover along with other major European indices in the morning session. On the economic data front, according to Markit Economics, France’s services PMI declined to 57.4 in February—less than the forecast of 57.9.
At 4:05 AM EST today, the CAC 40 Index was trading at 5,159.39—a gain of 0.44%. The iShares MSCI France (EWQ) fell 0.13% on Friday.
Next, we’ll discuss how US markets performed in the week ending March 2.