European stocks slid lower ahead of the US Fed minutes

Tuesday, November 19, 2013

European equity markets retreated today, breaking a three-day upside rally, as investors were prompted into some profit taking in order to lock in recent gains. CAC, DAX, IBEX and London declined between 0.35% and 1.57%, while Wall Street equities consolidated within the recent range. 

The euro continued its upside rally, holding above 1.35 against the US dollar, despite the absence of major macroeconomic indicators from Eurozone and US.

In London, mining stocks dragged the market lower due to weaker base metals prices. Anglo American, Glencore, Vedanta and Antofagasta fell sharply between 1.05% and 2.68%. On the upside, Easyjet surged by 7.09% after reporting strong earnings, that beat expectations and overshadow its competitor, Ryanair.

The main focus this week remains the statement from the latest US Federal Reserve policy meeting that will be released tomorrow, with investors watching closely for any indications on the timing of any QE tapering.

In the meantime, the release of the US retail sales, existing home sales and CPI inflation data will provide a better outlook for the US economic conditions and prospects. However, we expect some consolidation in the equity markets as investors would like to remain cautious ahead of the US Fed minutes.  

Topics: US Fed, Equities, USD, EUR
More from: Myrto Sokou