European equity markets rebounded in today’s trading session, despite that the euro remained under pressure following the European election results. The CAC, DAX, IBEX and the London equity index gained between 0.2% and 0.6%.
On the macroeconomic front, solid US economic data improved market sentiment and increased risk appetite. Durable goods rose unexpectedly by 0.8% in April against expectations of a 0.7% decrease, while consumer confidence rose to 83.0 in May from a 82.3 in April, giving further upside momentum to the US dollar. The USD index surged more than 0.2% above 80.4.
In Ukraine, the political conditions remain fairly tentative as the country recently launched air strikes in order to control a separatist revolt, while this morning Russia’s Foreign Minister Lavrov called for an end to violence in Ukraine, without delay.
In London, technology stocks led the equity market higher as Arm Holdings and Sage Group surged by 3.97% and 3.04%, respectively. Banks were also higher as risk appetite increased; Lloyds, HSBC and RBS increased between 1.17% and 1.5%.
Base metal prices posted fresh gains today, supported by robust US economic figures which suggested a possible rebound in US metals demand. LME aluminium rose by 0.9 to retest 1830 and copper also increased toward 6940.
Tomorrow, investors will be watching for the release of the German import/exports prices and unemployment rate as well as Eurozone’s consumer confidence and economic sentiment. In the US, the main focus will turn to the Dallas Fed index.