European equity markets edged higher in today’s trading session, while investors remain cautious ahead of the US FOMC policy meeting decisions. The DAX and London equity benchmark posted small gains and finished near 0.15% higher, while the CAC index missed the uptrend and ended the session in the negative side.
The euro rebounded strongly, trading around 1.355 against the USD, offering some support to equity and commodity markets.
In the UK, the results from the Bank of England meeting showed MPC voted 9-0 to keep interest rates unchanged at 0.5% in June, while all members agreed more economic slack needs to be absorbed before an interest rate rise.
Crude oil prices rallied higher with Brent front month futures retesting the $114 per barrel level, supported by persistent tensions in Iran which have raised renewed concerns about oil supply issues in the region. The weekly DOE oil inventories report showed a decline of 579,000 barrels in crude oil inventories but increases in gasoline and distillate stocks. Heavy-weighed energy stocks were the main support in the London market today as Royal Dutch Shell, BP and BG Group rose strongly between 0.56% and 1.7%.
Base metal prices were fairly mixed, as investors are looking for further direction at from the US Federal Reserve meeting this evening. Copper consolidated around $6,700, while Aluminium surged above $1800. Nickel gave back yesterday’s gains and slid lower towards $18,600.