European Indices Start Low Yet Pick Up
London: 21 December 2023 (TraderMade): European bourses picked up after a start in the red on Thursday, while Wall Street's downbeat performance the night before. Investors, seemingly satisfied with a nine-day winning streak, opted for profit-taking ahead of crucial US economic data later this week.
Stability post-downward trend
All major European indices were slightly rising (At about 09:37 AM GMT).
- FTSE 100 (UK100) rose by 0.49% to 7725.8
- DAX 30 (GER30) picked up by 0.27% to 16697.2
- CAC 40 (FRA40) climbed 0.36% to 7560.7
Asia-Pacific markets had set the bearish tone earlier, with Japan's Nikkei 225 and Topix shedding over 1% each.
US data in focus
Market participants' eyes are glued to upcoming US economic releases:
- Thursday: Gross domestic product (GDP) reading.
- Friday: Personal consumption expenditures price index (PCE)- a key inflation gauge.
UK inflation relief
European markets traded mixed on Wednesday after UK inflation surprised by falling more than expected to 3.9% in November. This eased pressure on the Bank of England, potentially paving the way for rate cuts in 2024.
The Takeaway
While European markets are taking a breather and slightly improving, investors are on high alert for the upcoming US data. The US GDP and PCE could significantly impact global sentiment and future trading patterns.
