Pre-Market Report: Mixed Global Markets, Decreased Risk Appetite PART 2 OF 4
Despite falling for two consecutive trading weeks, the United Kingdom’s FTSE 100 Index started this week on a stronger note. The FTSE 100 Index started September 19 on a mixed note and traded with strength above the opening prices in the morning session.
The FTSE 100 Index fell last week due to soft economic data and a rise in the pound. However, the pound’s decreased momentum and the improved market sentiment helped the FTSE 100 Index move higher on Monday. On Tuesday, the market opened with mixed sentiment amid weakness in Asian markets and a lower risk appetite ahead of the Fed’s US interest rate meeting.
The market gained strength from the rally in supermarket stocks. Also, the pound pulled back from 15-month high price levels. Supermarket stocks rose higher as Kantar Worldpanel reported that sales in the United Kingdom’s supermarkets rose 3.6% year-over-year in the 12 weeks to September 10, 2017. There was a rally in supermarket stocks on Tuesday, which supported the FTSE 100 Index. The market is looking forward to the release of retail sales data at 4:30 AM EST on September 20.
At 6:05 AM EST, the FTSE 100 Index is trading at 7,279.25—a rise of 0.35%. On September 18, the iShares MSCI United Kingdom (EWU) rose 0.03% and closed at 34.54.
Germany’s DAX Index started this week on a stronger note following two consecutive weekly gains. On Tuesday, the Dax Index started the day with mixed sentiment amid the market’s decreased risk appetite. On the economic data front, according to the ZEW Research Institute, the Germany ZEW Economic Sentiment for September rose to 17. It’s higher than the forecast of 12.5 and the first rise in four months. At 6:10 AM EST, the DAX Index was trading at 12,551.50—a fall of 0.06%. On September 18, the iShares MSCI Germany ETF (EWG) rose ~0.25%.
After regaining strength and rising last week, France’s CAC 40 Index started this week on a positive note. However, the market started lower on Tuesday amid the decreased global risk appetite ahead of the Fed’s interest rate meeting. The index traded above the opening prices in the morning session. At 6:15 AM EST, the index was trading at 5,232.25—a rise of 0.06%. The iShares MSCI France (EWQ) rose 0.16% on September 18.
In the next part of this series, we’ll see how the US Dollar Index and US Treasury yields performed early on September 19.