European equity markets rebounded strongly and posted robust gains today, as risk appetite increases. The CAC, DAX, IBEX and the London equity benchmark index finished between 0.85% and 1.45% higher, while the sterling extended gains toward 1.685, verifying the recent uptrend.
The euro came under pressure this morning, trading near 1.380 against the US dollar. On the macroeconomic front, the release of the UK GDP figure showed the UK economy grew by 0.8% in the Q1 2014, slightly lower than 0.9% forecast.
In the US, Consumer Confidence index in April was disappointing, missing analysts’ estimates. The dollar has improved marginally through the day.
Brent front month futures rebounded strongly, trading above $109 per barrel, offering upside momentum to energy stocks. BG Group, BP, Tullow Oil and Royal Dutch Shell gained between 1.09% and 3% in today’s trading session.
Tomorrow, the release of the US GDP data as well as Chicago PMI could add to market sentiment. In Eurozone, investors’ attention will turn to the release of the inflation data as well as German retail sales.