European Stocks Suffer Despite Encouraging Fundamentals

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European Stocks Suffer Despite Encouraging Fundamentals
European Stocks Suffer Despite Encouraging Fundamentals

European Stocks Suffer Despite Encouraging Fundamentals

After a bullish Tuesday boosted markets, European stock indices are down across the board on Wednesday as traders and investors look ahead to the European Central Bank (ECB) press conference.

In Germany, the DAX 30 is down 24.80 points (0.26%) for the day, currently trading at 9,564.96. Leading the day’s losses was Nivea skin cream manufacturer Beiersdorf AG (BEI.DE), down 2.58% from the day’s open on disappointing earnings and currently trading at 71.63.

Similarly, the CAC 40 is down 0.11% for the day, currently trading at 4,390.87. The day’s biggest loser is project management company Technip (TEC.PA), down nearly 2.5%. The decline is more collateral than direct, primarily based on disappointing earnings reports across the construction industry.

In the UK, the FTSE 100 is down 0.58% despite better than expected services PMI data, currently trading at 6,785.24. Engineering behemoth Melrose Industries PLC (MRO.L) heads up the day’s losers, falling a massive 9.24% on declining revenues, despite reporting a jump in earnings.**relatedarticle**

In the U.S., the S&P 500 closed at record highs on Tuesday and S&P 500 futures traded upwards throughout the European morning session. During the first couple of hours of the U.S. morning session the bullish momentum has carried over, with the index currently trading at 1,876.19, a 0.12% advance on the day’s open.

Conversely, the Dow Jones has declined during the U.S. morning session, currently trading at 16,380.60, 15.28 points down on the open.

A couple of key data releases have coincided with the opening of the U.S. markets and may hint at a day of declines for the U.S. indices. ADP non-farm employment has fallen short of expectations at 139K versus a forecast of 160K. Similarly, ISM non-manufacturing PMI disappointed, reported at 51.6 versus a forecast of 53.5.

As an additional note, Federal Open Market Committee (FOMC) member Richard Fisher is set to speak at 19:00 GMT. The tone of the speech will likely influence the U.S. market’s close. Back in February, Fisher was reported to be a strong backer of asset purchase tapering, and any hint at a reinforcement of this bias could offer up some downside momentum across the board.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com