European Markets Are Weak Early on September 8

Pre-Market Report: Global Markets Are Mixed on September 8 PART 2 OF 3

United Kingdom

After rising on Thursday, the United Kingdom’s FTSE 100 Index opened lower on Friday. Investors are digesting the outcome of the ECB (European Central Bank) meeting. The ECB held the interest rate steady. The ECB decided to make a decision on the quantitative easing program at the meeting in October.

The market is stable in the morning session. It’s above the opening prices due to support from Asia’s stable markets and the United Kingdom’s economic data. According to data released today by the Office for National Statistics, the United Kingdom’s manufacturing production in July rose 0.5%, which is higher than the forecast of 0.3%. On the other hand, the trade balance fell to 11.58 billion pounds in July—less than the expected balance of 11.95 billion pounds. The market is looking forward to the release of the United Kingdom’s consumer price index and producer price index next week.

At 5:55 AM EST, the FTSE 100 Index is trading at 7,377.25—a fall of 0.27%. On September 7, the iShares MSCI United Kingdom (EWU) rose 0.89% and closed at 34.15.

Germany

After rising for three consecutive trading days, Germany’s DAX 30 Index opened with less upward momentum on Friday. The weak market risk appetite amid the ECB’s interest rate decision and ongoing geopolitical tensions made the DAX 30 Index start lower on Friday. On the economic data front, Germany’s trade balance fell to 19.5 billion euros, which is less than the expected reading of 20.3 billion euros. At 6:00 AM EST, the DAX Index was trading at 12,293.50—a fall of 0.03%. On September 7, the iShares MSCI Germany ETF (EWG) rose ~1.2%.

France

France’s CAC 40 Index rose for two consecutive trading days but pulled back on Friday. The CAC 40 Index opened lower on September 8 amid the market’s decreased risk appetite. On the economic data front, France’s industrial production rose 0.5% in July, which is less than the expected growth of 0.6%. At 6:05 AM EST, the index was trading at 5,103.50—a fall of 0.21%. The iShares MSCI France (EWQ) rose 0.87% to 30.16 on September 5.

In the next part of this series, we’ll see how commodities like copper, crude oil, and precious metals performed in the early hours on September 8.

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