Milan, Paris and Madrid are doing well, while Frankfurt and London are far behind. Meanwhile, Sweden also raised interest rates while confidence in the Eurozone economy fell to its lowest level in 7 months. The euro is less than 1.09
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Major European stock indices are moving at different speeds after a string of data indicating US gross domestic product was stronger than preliminary estimates in the first quarter, German inflation accelerated beyond forecasts to 6.4% in June after a low of 6.1% in May, while Index of economic confidence in the euro area for the second month in a row, also in June. Sweden also raised interest rates by 25 basis points, to 3.75%. Meanwhile, there is also a clear upward revision of US GDP in the first quarter to 2%, much higher than the 1.3% previously estimated.
Milan is the best with the FTSE Mib advancing by about 1 percentage point just below 27,900 points supported by strong gains in auto, energy and banking stocks. On the other hand, Frankfurt is struggling to maintain parity with London, while Paris and Madrid are moving a little higher.
On the forex front, investors are digesting the data as the euro fell below 1.09 against the dollar as fears of a recession in the eurozone resurfaced. On the commodities front, the price of Oil has rallied with WTI back over $70 and Brent crude just under $75. Even major government bond yields are moving higher with the BTP moving just above 4.1% while the German Bund is traveling above 2.4%.
This article was written by FinanciaLounge.com.
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