European equity markets surged in today’s trading session, as risk appetite increased. The CAC, DAX, IBEX and London equity benchmark index climbed between 0.5% and 1.6%, while US equity markets also traded in positive territory.
On the macroeconomic front, US producer prices rose 0.2% in October against expectations of a 0.1% decline, while NAHB housing market index increased to 58 in November from 54 in October, beating analysts’ expectations. We received fairly robust German data from the ZEW survey which showed current situation increased to 3.3 in November compared to 3.2 in October, while expectations surged to 11.5 in November versus estimates of 0.5. The euro rebounded above 1.25 against the US dollar, following the optimistic German indicators.
Crude oil prices reversed from earlier gains and slid lower in the afternoon session. WTI front month futures retreated more than 1.4% towards $74 per barrel, while Brent front month futures plunged nearly 1% towards $78 per barrel, ahead of the release of the weekly API oil inventories report.
Precious metal prices rebounded with gold trading around the key level of $1,200/ounce and silver breaching above $16.