European equity markets rebounded strongly today, supported by solid economic data from the UK, US and Eurozone, which increased risk appetite. The DAX, CAC and IBEX gained between 1.2% and 1.55%, while the London equity benchmark index also followed the uptrend and ended 0.7% higher.
On the macroeconomic front, the UK unemployment fell unexpectedly to 6.9% in February compared to 7.2% in January. Furthermore, the Eurozone’s inflation also declined to 0.9% in March, beating analysts’ expectations. In the US, the data has remained fairly robust after showing an increase of 0.7% in industrial output, while house starts surged by 2.8% in March, verifying the improving conditions in the US housing market.
In London, healthcare stocks, as well as banks and mining shares supported the strong upside trend in the market. Lloyds and Barclays surged by 2.55% and 2.15%, while insurance companies also posted strong gains with Prudential and Aviva gaining 1.5%.
Mining stocks also rebounded following a rise in base metals prices. LME copper surged to retest $6645, while Aluminium has breached above the $1870 level. Consequently, Antofagasta and Anglo American rebounded by 1.86% and 1.72%, respectively.
Tomorrow, the main focus will switch to the release of the weekly US jobless claims and Philly Fed business index as well as German producer prices. As we approach closer to the Easter holidays, market conditions could remain thin, especially due to the absence of key economic data from the US and Eurozone.