Global equities rallied strongly ahead of the FOMC meeting

Monday, December 16, 2013

European equity markets rebounded strongly on Monday, starting the week on a positive note, as strong economic data from the US and Eurozone boosted market sentiment and increased risk appetite. CAC, DAX, IBEX and London surged between 1.28% and 1.74%, while the euro corrected higher against the US dollar.

On the macroeconomic front, Eurozone’s flash PMI data was fairly strong, showing improvements in the manufacturing and services sectors across the Eurozone. In the US, industrial output rose by 1.1% in November, beating analysts’ expectations, while manufacturing output also increased by 0.6% in November. However, the PMI manufacturing preliminary was reported at 54.4 in December, slightly below analysts’ estimates.  

Banks, mining and energy stocks led the London equity market higher in today’s trading session. Lloyds, RBS and Barclays climbed higher more than 1.4%. In miners, Mondi, Vedanta, BHP Billiton and Anglo American gained between 1.89% and 4.15% following a rebound in base metals prices.

However, we expect fairly nervous trading conditions this week as investors would like to remain cautious ahead of the crucial FOMC meeting that starts tomorrow with decisions on Wednesday about QE tapering that could change the global macroeconomic outlook.

 

Topics: USD, Base Metals, DAX, FTSE100, PMI, CAC, EUR
More from: Myrto Sokou