European equity markets retreated in today’s trading session following a strong rally yesterday but managed to finish the week on the positive side. The DAX, CAC and IBEX slid lower between 0.2% and 0.7%, while the euro consolidated around 1.36 against the US dollar.
On the macroeconomic front, it was a fairly quiet session as the US markets remained closed to celebrate Independence Day. German industrial orders fell by 1.7% in May, against analysts’ expectations of a smaller 1% decline. The euro came initially under some pressure falling toward 1.355 but easily recovered in late trading to retest the 1.36 area.
The London benchmark index managed to finish the day on the positive side, following the recent robust Markit/CIPS PMI manufacturing services data, which verified signs of strong economic recovery. Sterling edged higher against the dollar holding above the 1.715 area, while it also climbed higher against the euro breaching above 1.26.
Base metals prices reversed and slid lower. LME Aluminium came under renewed pressure after falling more than 0.65% towards 1920, while Copper slid lower towards 7150. Crude oil prices retreated as concerns eased in Middle East, while Libya declared an end to oil crisis. Brent front month futures slid lower towards $110 per barrel.