European equity markets rebounded today as risk appetite increased. The DAX, CAC, IBEX and the London equity market rose between 0.3% and 0.67%, tracking strong gains in the US equity markets.
On the macroeconomic front, Eurozone’s consumer confidence jumped to a 6.5 year high at -7.1 in May, beating analysts’ expectations of a -8.2 reading. In the UK, retail sales also increased by 1.3% in April above estimates of a modest 0.5% rise. The GBP edged higher trading above 1.685 against the US dollar, while the euro remained under pressure trading around 1.365 against the USD.
In London, healthcare and technology stocks led the market higher. AstraZeneca and GlaxoSmithKline jumped by 2.59% and 0.93%, respectively, as risk appetite increases in the pharmaceutical sector.
Tomorrow, market participants will be watching for the release of the US weekly jobless claims and National Activity index as well as existing home sales data for April and KC Fed manufacturing index. In the UK, investors’ attention will turn to the major announcement of the GDP figures, which could provide an insight into the current UK market conditions.