European equity markets have been fairly mixed on Monday, struggling for some direction due to the absence of major macroeconomic data from the US and Eurozone. The CAC and London benchmark index managed to close on the positive territory, while the DAX index came under pressure and finished the day 12.03 points lower (-0.13%). The US equity markets failed to provide any momentum.
In currency movements, the US dollar has been softer against the euro which has continued its strong rally trading above the 1.36 area. The Eurozone’s sentiment index rose to 13.3 in February, beating expectations after showing a steady but strong economic recovery.
In London, strong gains in technical and consumer goods stocks managed to offset losses in industrial and construction companies. Arm Holdings and Sage Group added 2.23% and 0.96% respectively, spreading an optimistic tone across the markets. British American Tobacco, Imperial Tobacco and Burberry climbed higher between 1.26% and 1.42%, following strong trading updates.
Tomorrow, the main focus will turn to the release of the UK BRC retail sales figures as well as US wholesale inventories data from the US, which could provide further signs about the US economic conditions and prospects. However, due to the lack of key macroeconomic data releases on the horizon, we expect further consolidation across the equity markets as investors are likely to remain cautious.