It has been such a volatile trading session for the European equity markets as they opened the day positevely but disappointing German economic data hurt market sentiment in early trading and added pressure to most European indices. However, a sharp increase in the US home sales figures managed to bring optimism back to the equities board. The CAC and DAX indices climbed more than 0.4% and 0.65%, respectively, while the London equity benchmark edged higher to retest 6680.
On the macroeconomic front, German business confidence retreated for a fifth consecutive month. The Ifo institute’s Business Climate Index fell to 104.7 in September from 106.3 in August, missing analysts’ expectations of 105.8.
On the other hand, we received fairly robust US housing data as New Home Sales jumped by 18% in August, beating analysts’ estimates of 4.4%.
Precious metals prices retreated as gold fell to retest 1,220/ounce, while silver retreated towards $17.60. Base metal prices climbed higher with zinc climbing towards 2280 and copper trading above 6,740. Nickel rose above 17,250, while aluminium and tin also edged higher.
Tomorrow, investors will be keeping an eye on the release of the weekly US jobless claims as well as durable goods and Markit services PMI data.