European equity markets posted fresh losses in today’s session, finishing a fairly volatile week. The CAC, DAX and London benchmark retreated between 0.05% and 0.45% today, as weak economic data weighed further on market sentiment and prompted investors to another round of sell-off in the markets.
On the macroeconomic front, US nonfarm productivity rose by 2.5% in Q2 2014, beating analysts’ expectations of 1.6%. However, US wholesale inventories rose marginally by 0.2% in June against estimates of a 0.7% increase. In Germany, exports increased by 0.9% in June compared to a decline of 1.1% in May and imports rose strongly by 4.5% during the same period.
In the UK, construction output increased by 1.2% in June, beating estimates of 1.0%. However, Sterling remained under pressure after falling towards 1.675 against the USD, verifying the recent downtrend in the last 3 three weeks.
The US President Barack Obama authorised air strikes against ISIS forces in Northern Iraq on humanitarian grounds, and some attacks have reportedly taken place today. The USD index reversed and slid lower trading around 81.38 against a basket of currencies, erasing part of earlier gains this week.
Base metal prices remained under pressure today as fairly disappointing Chinese trade data and persistent tensions in Russia weighed on market sentiment. Precious metals were fairly unchanged on the day with Silver trading around 20.0, while gold was just above the $1300 area.