Pre-Market Report: Weak Global Markets, Decreased Risk Appetite PART 2 OF 4
After rising for three consecutive trading weeks, the United Kingdom’s FTSE 100 Index started this week on a weaker note. It fell in the first two trading days and carried the weakness to Wednesday. It opened the day lower and traded with weakness in the early hours on September 6.
In the United Kingdom, the recent market sentiment is weak amid weaker-than-expected economic data and ongoing geopolitical tensions. The FTSE 100 Index started this week amid weaker-than-expected construction and services PMI (purchasing managers’ index) reports. According to data released by CIPS, the U.K. construction PMI fell to 51.1 in August—below analysts’ estimates of 52. Similarly, the U.K. services PMI fell to 53.2 in August—below the market’s forecast of 53.5. The market is looking forward to the release of the Halifax House Price Index at 3:30 AM EST on September 7.
At 5:05 AM EST, the FTSE 100 Index is trading at 7,328.75—a fall of 0.6%. On September 5, the iShares MSCI United Kingdom (EWU) fell 0.79% and closed at 33.72.
After losing strength last week, Germany’s DAX Index started this week on a weaker note. Despite a brief rebound on Tuesday amid supporting construction and services PMI data, the market fell and opened lower on Wednesday. The weak global sentiment amid North Korea’s nuclear missile tests is weighing on the DAX Index. On the economic data front, German factory orders fell 0.7% in July. At 5:10 AM EST, the DAX Index was trading at 12,101.00—a fall of 0.19%. On September 5, the iShares MSCI Germany ETF (EWG) fell ~0.26%.
After trading with weakness in the first two trading days this week, France’s CAC 40 Index opened lower on Wednesday. Amid weakness in Asian markets and selling in European markets in the morning session, the CAC 40 Index is weak in the morning session. The market is waiting for France’s imports, exports, and trade balance data at 2:45 AM EST on September 7. At 5:15 AM EST, the index was trading at 5,072.50—a fall of 0.28%. The iShares MSCI France (EWQ) fell 0.7% to 29.59 on September 5.
In the next part of this series, we’ll see how the US Dollar Index and Treasury yields performed in the early hours on September 6.