The United Kingdom
After gaining for eight consecutive trading weeks, the United Kingdom’s FTSE 100 Index started this week on a stronger note by rising to record high price levels on Monday. Carrying forward the strength, the FTSE 100 Index opened higher on May 22. The index was trading with strength at fresh record high price levels in the morning session.
The FTSE 100 Index opened stronger on Thursday following US markets’ strong performance on Monday. However, the upward momentum was limited by profit-booking at elevated levels in the morning session. In addition to this, the rise of Italian bond yields to 14-month high price levels weighed on European markets. On the economic data front, according to the Office for National Statistics, the United Kingdom’s public sector net borrowing increased by 6.23 billion pounds in April, which is less than the forecasted value of 7.2 billion pounds.
At 5:00 AM EST, the FTSE 100 Index was trading at 7,879.24 with a gain of 0.26%. The iShares MSCI United Kingdom (EWU) gained 0.79% to $37.23 on Monday.
Germany’s DAX 30 Index surged past 13,000 last week and gained for the eighth consecutive week. Germany’s markets were closed on Monday for the “Whit Monday” holiday and resumed trading today. On May 22, the DAX 30 Index opened at the highest levels traded since the beginning of February and consolidated at elevated levels in the morning session. Caution is observed in German markets ahead of the release of the German Bundesbank’s monthly report. The report focuses on issues related to monetary, financial, and economic policies.
At 5:10 AM EST, the DAX 30 Index was trading at 13,094.34—a gain of 0.13%. The iShares MSCI Germany (EWG) gained 0.79% on Monday.
France’s CAC 40 Index started this week on a stronger note by rising to the highest levels traded since January 2008. On Tuesday, the CAC 40 Index started the day on a stable note and consolidated at elevated levels in the morning session. European markets are trading with caution in the morning session amid rising Italian bond yields. France’s market is looking forward to the release of strong of economic releases including unemployment data and services PMI data that are scheduled to be released on Wednesday.
At 5:15 AM EST on Tuesday, the CAC 40 Index was trading at 5,631.51—a drop of 0.11%. The iShares MSCI France (EWQ) gained 0.73% on Monday.
Next, we’ll discuss how the US Dollar Index and Treasury yields performed in the early hours on May 22.