Pre-Market Report: Global Markets Are Stronger on July 20 PART 2 OF 6
After gaining for two consecutive trading weeks amid improved market sentiment, the United Kingdom’s FTSE 100 Index opened this week on a positive note. After a brief pull back on Tuesday, the FTSE 100 Index rose on Wednesday to three-week high price levels. On July 20, the FTSE 100 Index opened higher and traded at one-month high price levels in the morning session.
The sentiment in European markets is stronger amid the start of second quarter earnings season. In the morning session, the FTSE 100 Index is buoyed by upbeat economic data. According to data released by the Office for National Statistics, the United Kingdom’s retail sales improved 0.6% in June (2.9% YoY)—better than the market’s forecast of 0.4% growth in June. In addition to the improved market sentiment and supporting economic data, weakness in the pound also supported the FTSE 100 Index in the morning session.
At 6:35 AM EST on July 20, the FTSE 100 Index was trading at 7,481.75—a rise of 0.68%. The iShares MSCI United Kingdom ETF (EWU) rose 0.3% to $33.89 on July 19.
Germany’s DAX Index gained for two consecutive trading weeks amid improved global sentiment. However, it opened this week on a weaker note by falling in the first two trading days. It regained strength on July 19 and opened higher on Thursday. On the economic data front, Germany’s producer price index remained unchanged in June. The market expected a decline of 0.1%. At 6:40 AM EST on July 20, DAX was trading at 12,499.25—a rise of 0.38%. The iShares MSCI Germany ETF (EWG) remained unchanged on July 19.
France’s CAC 40 Index is trading with strength ahead of the ECB’s interest rate decision. The CAC 40 Index opened higher today and traded with strength above 5,200 in the morning session. So far, better-than-expected second quarter earnings reports improved the market sentiment and increased buying pressure. At 6:45 AM EST, the CAC 40 Index was trading at 5,228.75—a rise of 0.25%.
In the next part, we’ll discuss how Wall Street performed on July 19.