European equity markets rebounded in today’s session showing signs of upside correction. The CAC, DAX, IBEX and London equity benchmark indices recovered from yesterday’s sharp losses and climbed higher today gaining between 1.1% and 1.9%. The euro bucked the recent downtrend and rebounded strongly today eyeing the 1.09 level against the USD.
In the US, the Dow Jones index edged higher and added nearly 90 points (+0.5%) at the time of writing, while the S&P 500 and NASDAQ indices gained 0.5% and 0.7%, respectively.
On the macroeconomic front, Germany’s GfK consumer confidence rose marginally to 10.2 in June compared to 10.1 in May, beating analysts’ expectations of 10.0. Due to the absence of key US economic data, currency movements provided signs of direction. The USD index initially slid lower and reached a today’s low at 96.80 this morning; however, the USD index rebounded strongly and hit a high at 97.8 adding further pressure to most commodity prices.
Crude oil prices gave back earlier gains and slid lower in the afternoon session, while base metal prices were fairly mixed.
In London, Rolls-Royce gained 0.9% following news that the company was awarded a EUR 80 mln contract to supply 589 diesel engines to the British Army for use in a new fleet of state-of-the-art tanks. The deal could provide a boost for its land and sea division.