Strong economic data helped global equity markets to end in positive territory

Tuesday, January 14, 2014

European equity markets rebounded from losses in early trading and ended in positive territory on Tuesday, supported by better than expected economic data from the US and Eurozone and strong earnings results from US companies that lifted risk appetite.

CAC, DAX, IBEX and the London benchmark index gained between 0.25% and 0.32%, while equities in the Wall Street rebounded from yesterday’s losses and climbed higher with Dow Jones gaining more than 50 points at the time of writing.

On the macroeconomic front, Eurozone’s industrial production surged by 1.8% in November beating analysts’ expectations of 1.4%. In the US, retail sales increased by 0.2% in December, during the Christmas holiday period, against estimates of 0.1%, while retail sales excluding autos climbed by 0.7%, verifying improvements and increasing consumption in the US economy.

In London, strong gains in defensive stocks (including technology, telecommunications and consumer services) outweighed losses in the energy and mining stocks. BskyB climbed by 3.75% and led the equity board today following an upgrade from UBS regarding possible M&A rumours. Shire and AstraZeneca also surged by 2.75% and 2.5%, respectively.

The US dollar has been trading sideways against the euro, while the USD index has been consolidating around 80.5 area.

Tomorrow, investors will be closely watching the release of the German GDP data that could provide a better insight into German economic prospects, possibly giving further momentum to the euro. In the afternoon, market’s attention will turn to the releases of the US NY Fed manufacturing figures, PPI inflation as well as Producer prices.

FTSE 100 - Daily Chart

UKX Index

 

Topics: DJI, USD, Europe, DAX, CAC, EUR
More from: Myrto Sokou