European equities rebounded strongly today, as risk appetite increased with investors trying to get benefitted from the recent low levels across the global equity markets during the last few trading sessions. The CAC, DAX and the London benchmark index gained between 0.16% and 0.68%, while the euro continued its strong uptrend, trading above 1.38 against the US dollar.
On the macroeconomic front, the German economic data was fairly disappointing after showing a drop of 1.3% in exports against expectations of 0.5% decline, while imports increased by 0.4% in February. Due to absence of key economic data from the US, currency movements offered some momentum to equity and commodity markets.
In commodities, base metals prices were fairly mixed with LME Aluminium gaining nearly 2% to test 1855 area, while Copper gave back recent gains and retreated toward 6615. Crude oil prices continued their recent strong uptrend with Brent futures back to the $108 per barrel level, despite a fairly disappointing US weekly DOE report showing further builds in crude oil inventories.
Tomorrow, investor attention will turn to the release of Chinese imports/exports data as well as Bank of England’s interest rate decision. In the US, the main focus will switch to the weekly jobless claims as investors are watching closely for a confirmation of the US employment trends and the crucial US Federal Budget details.