On Friday, the major European stock indices demonstrated sustainable growth. The key factor fueling the rise was upbeat performance of the US exchanges.
At the time of writing, the French CAC 40 was up by 0.7%, the German DAX gained 0.76%, while the British FTSE 100 increased by 0.48%.
Market Sentiment
The key growth driver for European exchanges on Friday was the rise in US stock market indices the day before. Thus, at the end of Thursday trading session, the Dow Jones Industrial Average index rose by 0.34%, the S&P 500 increased by 0.94%, and the NASDAQ Composite gained 1.51%.
The optimism of American traders is related to hopes for a resolution to the US federal debt ceiling situation. The day before, during a meeting at the White House, US President Joseph Biden expressed confidence in reaching an agreement on this issue.
At present, negotiations between Biden and Congressional leaders continue. In letters to Congress, the Treasury Department has warned that by June 1, the country will most likely be unable to fully service its obligations if lawmakers do not authorize an increase in borrowing limits by this time.
Analysts expect a final agreement regarding the US federal debt to be reached this coming weekend. However, the details, conditions, and implications for the economy of this agreement still remain a big question. Consequently, the US stock market is currently in a more risky mode, but it is trading within a narrow range.
An additional reason for optimism on American exchanges the day before was the decrease in fears of a possible default in the United States amid prospects for reaching a consensus on the federal debt ceiling.
This week, European investors have been analyzing data on the euro area. Thus, according to the final estimate of the European Union’s statistical service, the annual inflation in the eurozone accelerated to 7% in April from March’s 6.9%. The indicator coincided with the preliminary expert estimates. A year earlier, inflation in the eurozone reached 7.4%.
Meanwhile, the core annual inflation slowed down in April this year to 5.6% from 5.7% a month earlier. The indicator also matched the preliminary estimate.
Additionally, the European Union’s statistical service retained its estimate of the growth of the Gross Domestic Product of the 20 eurozone countries for the past quarter at 1.3% in annual terms, and 0.1% in quarterly terms.
As for the data from Germany, in May the investor confidence index for the country’s economy plummeted to minus 10.7 points from April’s 4.1 points. Meanwhile, analysts had predicted the indicator to only drop to minus 5.3 points.
Meanwhile, in January-March, the unemployment rate in the UK increased to 3.9% from 3.8% in December-February. Experts did not expect a change in the indicator.
Results of Thursday trades
On Thursday, the leading stock indices of Europe closed in the green zone. The key factor for the rise of the European stock market the day before was also the confident rise of American exchanges. Thus, at the end of Wednesday’s trading session, the Dow Jones Industrial Average rose by 1.24%, the S&P 500 increased by 1.19%, and the NASDAQ Composite gained 1.28%.
As a result, on Thursday, the French CAC 40 grew by 0.64%, the German DAX gained 1.33%, and the British FTSE 100 increased by 0.26%.
The material has been provided by InstaForex Company – www.instaforex.com
On Friday, the major European stock indices demonstrated sustainable growth. The key factor fueling the rise was upbeat performance of the US exchanges.
At the time of writing, the French CAC 40 was up by 0.7%, the German DAX gained 0.76%, while the British FTSE 100 increased by 0.48%.
Market Sentiment
The key growth driver for European exchanges on Friday was the rise in US stock market indices the day before. Thus, at the end of Thursday trading session, the Dow Jones Industrial Average index rose by 0.34%, the S&P 500 increased by 0.94%, and the NASDAQ Composite gained 1.51%.
The optimism of American traders is related to hopes for a resolution to the US federal debt ceiling situation. The day before, during a meeting at the White House, US President Joseph Biden expressed confidence in reaching an agreement on this issue.
At present, negotiations between Biden and Congressional leaders continue. In letters to Congress, the Treasury Department has warned that by June 1, the country will most likely be unable to fully service its obligations if lawmakers do not authorize an increase in borrowing limits by this time.
Analysts expect a final agreement regarding the US federal debt to be reached this coming weekend. However, the details, conditions, and implications for the economy of this agreement still remain a big question. Consequently, the US stock market is currently in a more risky mode, but it is trading within a narrow range.
An additional reason for optimism on American exchanges the day before was the decrease in fears of a possible default in the United States amid prospects for reaching a consensus on the federal debt ceiling.
This week, European investors have been analyzing data on the euro area. Thus, according to the final estimate of the European Union’s statistical service, the annual inflation in the eurozone accelerated to 7% in April from March’s 6.9%. The indicator coincided with the preliminary expert estimates. A year earlier, inflation in the eurozone reached 7.4%.
Meanwhile, the core annual inflation slowed down in April this year to 5.6% from 5.7% a month earlier. The indicator also matched the preliminary estimate.
Additionally, the European Union’s statistical service retained its estimate of the growth of the Gross Domestic Product of the 20 eurozone countries for the past quarter at 1.3% in annual terms, and 0.1% in quarterly terms.
As for the data from Germany, in May the investor confidence index for the country’s economy plummeted to minus 10.7 points from April’s 4.1 points. Meanwhile, analysts had predicted the indicator to only drop to minus 5.3 points.
Meanwhile, in January-March, the unemployment rate in the UK increased to 3.9% from 3.8% in December-February. Experts did not expect a change in the indicator.
Results of Thursday trades
On Thursday, the leading stock indices of Europe closed in the green zone. The key factor for the rise of the European stock market the day before was also the confident rise of American exchanges. Thus, at the end of Wednesday’s trading session, the Dow Jones Industrial Average rose by 1.24%, the S&P 500 increased by 1.19%, and the NASDAQ Composite gained 1.28%.
As a result, on Thursday, the French CAC 40 grew by 0.64%, the German DAX gained 1.33%, and the British FTSE 100 increased by 0.26%.
The material has been provided by InstaForex Company – www.instaforex.com
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