Having initially shown some strength, European markets are starting to weaken on a raft of worse than expected data heading into European lunchtime.
The DAX 30 is the only European market holding on to gains, currently a little over 27 points (0.30%) up for the day at 9,292.89. Leading the charge in Germany is Volkswagen AG (VOW3.DE), currently up 2.85 points (1.59%) for the day at 181.75. The German market’s gains come despite a worse than expected trade balance, with the SBD reporting a cut in exports and a resulting trade balance figure of 17.2B, down from both the forecast 17.7B and the previous 18.3B.
The French market is suffering, with the CAC 40 down 16.50 points (0.38%) for the day at 4,355.16. The morning’s biggest loser is luxury fashion manufacturer/retailer Kering (KER.PA), currently down 1.56% for the day at 142.35. The downside momentum comes off the back of a reported decline in profits last month, from which the stock is yet to recover. Support will likely be found just shy of 136.00.**relatedarticle**
Also struggling on Tuesday is the FTSE 100, with mixed U.K. data revealing slower than expected growth in industrial production (MoM) of 0.1% versus a forecast of 0.2%, and better than expected growth in manufacturing production (MoM), reported at 0.4% versus a forecast of 0.3%. The U.K.’s leading index is down 0.17% on the morning session open, trading at 6.677.75 heading into the European afternoon. The day’s biggest loser is Barclays PLC (BARC.L), currently down 5.58% at 234.55 on reports of the company issuing increased employee bonus’ despite falling earnings.
In other news, on Monday, the Asian superpower reported worse than expected consumer price index (CPI) data, with the figure coming out at 2.0%, falling short of expectations at 2.1%. Compounding the global market’s fear of a pending slowdown, the Peoples Bank of China reported new loans at 645B versus a forecast 730B on Tuesday. The Chinese economy will likely dictate market sentiment as markets head into the latter half of the week.
To contact the reporter of this story: Usman Ahmed at email@example.com