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Eurozone inflation to set the tone today

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The European markets broadly remained in rebound-mode this morning, bouyed by a better than expected Chinese manufacturing figure overnight.

Spreadex Analyst, Connor Campbell commented “Despite its miners receiving the reassurance of that manufacturing from China the FTSE could only managed a 0.2% increase after the bell.”

“In the Eurozone things were far cheerier. The DAX and CAC both built on Wednesday’s rebound as the session got underway, rising 0.5% and 0.4% respectively. Much of yesterday’s Eurozone growth was predicated on the euro’s own losses, especially against the dollar.”

This could all change with the Eurozone inflation data, set to be released later today.

ADS Securities Analyst, Konstantinos Anthis suggested “The single currency has been under pressure as market participants were caught off guard by the surge in dollar’s strength.”

“Today there might be an opportunity for the euro to claw back some of the ground it has lost over the past 48 hours, but this will depend on how the Eurozone inflation report prints.”

“Germany’s data yesterday was a good precursor so the odds are in favour of a positive round of figures. An acceleration in price growth could support the view that the ECB now has enough data to start tapering their asset purchases program early in September.”

Over in the US, equity markets closed higher across the board on Wednesday.

Accendo Markets Analyst, Mike van Dulken noted “There was a notable divergence between indices. The Tech-focused Nasdaq outperformed peers as the sector made significant gains, including Apple notching a fresh record high while Netflix rallied over 3%, which also helped the S&P 500 to its fourth consecutive positive close.”

“The Dow Jones underperformed as insurer Travelers weighed as Tropical Storm Harvey continues to batter Texas.”

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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