A strong rebound for European equity markets

Thursday, May 08, 2014

European equity markets rebounded from recent losses and posted fresh gains in today’s trading session. The CAC, DAX and IBEX climbed between 0.9% and 1.7%, while the London benchmark equity index rebounded near a 9-week high.

DAX Index

DAX Index (Deutsche Boerse AG Ge 2014-05-08 17-11-41

In London, British banks led the equity market higher after Barclays announced a revival plan to boost its operations, part of which includes the setting-up of a “bad bank” and eliminating 19,000 jobs over the next 3 years. Barclays jumped by 7.95%, while Standard Chartered and RBS gained 2.03% and 1.7%, respectively.

On the macroeconomic front, the European Central Bank and the Bank of England kept interest rates unchanged, but ECB President Mario Draghi reported that the central bank is ready for further action in June, if needed. 

In the US, weekly jobless claims rose by 319,000 in the week ending May 3, 2014, less than analysts expected, driving the US dollar higher with the USD index trading around 79.3.

LME Copper rebounded in today’s session, gaining more than 1% to retest the 6720 area.

Tomorrow, investors will be keeping an eye on the release of the Chinese CPI inflation data as well as Germany’s imports and exports figures. In the UK, the release of industrial and manufacturing output data could provide further momentum. 

LME Copper

LMCADS03 Comdty (LME COPPER    3 2014-05-08 17-11-19

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