European Equities Gain Traction as house-Builders, Car-Makers Advance

Various market performance charts

European equity benchmarks were trading higher on Monday morning as gains from car-makers and housing developers offset contractions among commodities stocks amid a higher dollar.

The Dollar Index, which tracks the value of the US currency against a basket of foreign currencies, was 0.18% higher at the time of writing. As a dollar-denominated commodity, oil tends to be less affordable for foreign buyers when the greenback is higher.

West Texas Intermediate crude oil, the main US oil benchmark, was 1.7% lower at $48.29 per barrel at the time of writing while brent oil, the international oil gauge, was 1.8% lower at $49.96 per barrel. Miners Royal Dutch Shell, Fresnillo and BP were 0.3%, 6.2% and 0.4% lower, respectively, at the time of writing.

Also potentially feeding into the positive trading sentiment were comments made by Federal Reserve Vice Chairman Stanley Fischer in a speech delivered on Sunday. Fischer stated that core personal consumption expenditures inflation in the US, at 1.6%, was "within hailing distance of 2 per cent". The Fed's dual mandate aims for maximum sustainable employment and an inflation rate of 2%.

Fischer also pointed out that employment had increased "impressively" over the past six years and said that "looking ahead, I expect GDP growth to pick up in coming quarters, as investment recovers from a surprisingly weak patch and the drag from past dollar appreciation diminishes."

In equities, housing development companies Taylor Wimpey and Berkeley Group were 2.0% and 1.7% higher, respectively, on London's FTSE 100 Index while Hikma Pharmaceuticals was up by 1.0%.

On Frankfurt's DAX, automotive engineering company Daimler was up by 1.5%, followed by kidney dialysis company Fresenius Medical Care, 1.2% higher, and building materials manufacturer HeidelbergCement, up by 0.1%.

And, on Paris' CAC-40, hypermarket operator Carrefour was 3.0% higher, followed by auto-maker Peugeot, up by 2.3% and financial services provider AXA, up by 2.1%. Car manufacturer Renault was up by 1.7%.

The pan-European Stoxx 600 Index was up by 0.65%, the FTSE 100 was 0.01% higher, the DAX was up by 0.81% and the CAC-40 was 0.68% higher.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More