Global Market Wrap: European Markets Advance, On Weak GDP

www.TheLFB-Forex.com The Forex Trader Portal

Global Market Wrap:

European Markets Advance, On Weak GDP

Equity Futures: Dow +5.00. S&P +1.00. NASDAQ +2.50. Japanese Nikkei +20.00. German Dax +5.00.

European Trade: Mixed macroeconomic data hit the valuation of European shares in Friday trade. During the early part of the session the Flash PMI report showed that the service and manufacturing sides of the Euro-zone economy expanded during the prior month, after a prolonged period of contraction. This has helped the European markets advanced, with some European indexes surging up to 1%. 

However, at 04:30 EDT a report showed that the U.K economy continued to contract into the third quarter, even though the market expected a positive read. The actual read came in at -0.4%, compared to the expected 0.2%. This report had a strong influence on the financial markets, shedding some of the optimism seen previously. 

The S&P futures had a range of only 4 points during the overnight session, as the market failed to break either way. However, equity futures started to look bearish after the U.K. GDP report, as some market participants are pricing in a slower recovery

Sector Moves: Most sectors advanced in Friday trade, the only exception being the health care companies. Other than this, the gains were spread evenly among the automobile & parts, banks, basic resources and chemicals, with each of these sectors advancing approximately 1%. The automobile & parts sector advanced following the better than expected earnings reports from Kia and Hyundai. 

Economic Moves: The European calendar was loaded with important reports, something that has been reflected in the market reaction to the releases. The market’s focus point was the U.K. GDP report, which showed that the economy contracted for the sixth consecutive quarter, the most since records begun. Ahead, investors prepare for Mr. Bernanke to provide a speech at the Federal Reserve Bank of Boston Conference, and for the Existing Home Sales, scheduled at 10am EDT. 

Crude oil for November delivery was recently trading at $81.15 per barrel, lower by $0.10. 

Gold for November delivery was recently trading higher by $1.40 to $1060.00. Over the last two weeks of trading, gold has developed a wide range, in which it continues to move up and down in.