France Rebounds, China CPI Bounces Back after April’s Low
June 10, 2014 6:53 am
Equity markets in Europe fell at Tuesday’s open, pausing for breath after rising to their highest level in more than six years in the previous session. The Stoxx Europe 600 Index rose to its highest level since January 2008 yesterday, as stronger than expected Japanese GDP data fuelled optimism about the global economic recovery.
Although the Stoxx Europe 600 index trades weaker Tuesday, risk appetite remains on board with market participants taking stock for now ahead of key economic data out during the session – first off, we have UK manufacturing and industrial output data to watch out for.
Across the channel, France’s government have reported a rebound in industrial production in April. French industrial production rose 0.3% in April, which despite being slightly lower than market expectations, took the index out of negative territory.
Overnight, Asian equities were mostly mixed Tuesday with attention on the targeted RRR cut after China’s central bank announced the details of its 50bps cut yesterday. Fresh data out of China showed producer prices fell for a 27th consecutive month, reflecting weak demand. Meanwhile, China’s annual consumer price inflation rose to 2.5% in May, higher than anticipated and up from an 18-month low of 1.8% in April.
In Japan, the Nikkei 225 fell as the yen strengthened, subsequently closing down 0.9%. Australian markets were back in business following a public holiday on Monday. The ASX index ended up slightly higher. Across other asset classes such as bonds, yields on 10-year US and German paper are both lower while ‘peripheral’ euro zone bonds are holding near record low yields following the European Central Bank’s stimulus response last week.
On the whole, trading volume and volatility are dragging along low levels as stocks reach new highs. Most major benchmarks, particularly in developed nations, are sitting at six year highs, though it remains to be seen how long they’ll be enjoying the view from up there. Later in the session, we have US wholesale inventories data which will be under the spotlight.
Equity markets in Europe fell at Tuesday’s open, pausing for breath after rising to their highest level in more than six years in the previous session. The Stoxx Europe 600 Index rose to its highest level since January 2008 yesterday, as stronger than expected Japanese GDP data fuelled optimism about the global economic recovery.
Although the Stoxx Europe 600 index trades weaker Tuesday, risk appetite remains on board with market participants taking stock for now ahead of key economic data out during the session – first off, we have UK manufacturing and industrial output data to watch out for.
Across the channel, France’s government have reported a rebound in industrial production in April. French industrial production rose 0.3% in April, which despite being slightly lower than market expectations, took the index out of negative territory.
Overnight, Asian equities were mostly mixed Tuesday with attention on the targeted RRR cut after China’s central bank announced the details of its 50bps cut yesterday. Fresh data out of China showed producer prices fell for a 27th consecutive month, reflecting weak demand. Meanwhile, China’s annual consumer price inflation rose to 2.5% in May, higher than anticipated and up from an 18-month low of 1.8% in April.
In Japan, the Nikkei 225 fell as the yen strengthened, subsequently closing down 0.9%. Australian markets were back in business following a public holiday on Monday. The ASX index ended up slightly higher. Across other asset classes such as bonds, yields on 10-year US and German paper are both lower while ‘peripheral’ euro zone bonds are holding near record low yields following the European Central Bank’s stimulus response last week.
On the whole, trading volume and volatility are dragging along low levels as stocks reach new highs. Most major benchmarks, particularly in developed nations, are sitting at six year highs, though it remains to be seen how long they’ll be enjoying the view from up there. Later in the session, we have US wholesale inventories data which will be under the spotlight.
Related Posts: