The United Kingdom
After a brief pullback last week, the United Kingdom’s FTSE 100 Index started this holiday-shortened week on a weaker note by declining on Tuesday. The FTSE 100 Index opened slightly lower on May 30. The index was consolidating at three-week low price levels in the morning session.
Political tensions in Italy and Spain weighed on the FTSE 100 Index on Tuesday. The possibility of fresh elections and the chances of a majority to the Euroskeptic government weighed on European markets on Tuesday. On Wednesday, the FTSE 100 Index was stable at opening prices amid a lack of fresh developments in Italy’s political scene. Italy’s designated Prime Minister Carlo Cottarelli is going to meet President Sergio Mattarella today in an effort to form the government. The market is looking forward to the release of May’s UK GfK consumer confidence data. The data are scheduled to be released at 7:01 PM EST today.
At 4:25 AM EST, the FTSE 100 Index was trading at 7,635.43 with a gain of 0.04%. The iShares MSCI United Kingdom (EWU) declined 1.7% to $35.60 on Tuesday.
After declining last week and breaking the eight-week gaining streak, Germany’s DAX 30 Index started this week on a weaker note and declined in the first two trading days. However, the DAX 30 Index opened slightly higher on Wednesday and traded with caution in the morning session. The market is looking forward to the release of Germany’s inflation data. The data are scheduled to be released at 8:00 AM EST today.
At 4:35 AM EST, the DAX 30 Index was trading at 12,692.53—a gain of 0.21%. The iShares MSCI Germany (EWG) declined 3.1% on Tuesday.
Following a decline for five consecutive trading days, France’s CAC 40 Index opened lower on May 30. The index was trading with weakness at five-week low price levels. Escalating political uncertainty in Italy and the release of weak economic data on Wednesday weighed on the CAC 40 Index in the morning session. According to INSEE, France’s consumer spending declined 1.5% in April, which is weaker than the expected growth of 0.2%. According to the National Institute for Statistics and Economic Studies, France’s GDP grew 0.2% in the first quarter, which is less than the forecast of 0.3%.
At 4:45 AM EST on May 30, the CAC 40 Index was trading at 5,394.65—a drop of 0.8%. The iShares MSCI France (EWQ) declined 3.1% on Tuesday.
Next, we’ll discuss how US markets performed on May 29.