London equities reach 14-year high

Wednesday, May 14, 2014

European equity markets have managed to hold the recent high record levels, as the DAX and CAC indices ended fairly unchanged in today’s trading session. The London benchmark equity index managed to extend gains, trading above the 14-year high, suggesting potential to reach the key level of 6,900 in the following sessions.

On the macroeconomic front, German inflation fell slightly by 0.2% in April inline with expectations, while Eurozone’s industrial production declined by 0.3% in March inline with analysts’ estimates. However, we received some fairly optimistic UK employment data as ILO unemployment rate dropped to its lowest level in 5 years with a reading of 6.8% in March.

UK ILO unemployment

UKUEILOR Index (UK Unemployment  2014-05-14 17-28-55

Crude oil prices extended gains with Brent futures front month retesting the $110 per barrel level, while the WTI front month contract spiked above $102 per barrel, supported by a softer US dollar as the euro rebounded.

WTI Front Month

CL1 Comdty (Generic 1st 'CL' Fut 2014-05-14 17-26-44

Tomorrow, investors will be keeping an eye on the important GDP announcements from Japan, Eurozone, France and Germany as well as Eurozone’s inflation report. In the US, the main attention will turn to the weekly jobless claims as well as CPI inflation and industrial production data and Philly Fed business index.   

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