European stock indexes remain in the green zone, after the publication of important data on European inflation. At the same time, the UK stock market trades down, demonstrating its dependence on pound quotes. The British pound strengthened sharply after the announcement of the possibility of holding early elections in the UK, which negatively affected the shares of exporters. On Tuesday, British Prime Minister Theresa May said she wanted to hold a general early parliamentary election on June 8, and not wait until 2020 as planned. This step is viewed by political analysts as an attempt by May to strengthen its position during the Brexit talks with EU officials. Already today a vote is expected in the British Parliament on the issue of early elections, which is expected to receive the necessary support of two thirds of deputies. Shares of mining companies are trading higher, trying to recover from the fall of the previous day. The sector lost part of its position amid falling iron ore prices, which were under pressure due to concerns about the growth of the Chinese economy. Shares of Glencore PLC rose 1.8%, while Antofagasta PLC rose 1.9%. Oil prices strengthened slightly, pending the publication of official data on oil and petroleum products in the United States. Data from the American Petroleum Institute (API) published yesterday showed that last week crude oil inventories lost -0.840 million barrels, with a forecast of a decline of -0.050 million barrels. In the foreign exchange market, the situation has stabilized, as most market participants do not want to risk waiting for the Fed to publish the Exchange Book, as well as the speeches of ECB member Prant and the representative of the FOMC Rosengren. Published data on inflation in the eurozone met the expectations of traders, but did not have a visible impact on the foreign exchange market. Shares of Heineken NV rose 1.3% after the publication of data on net profit growth of 11% in the first quarter, which was higher than market expectations. Associated British Foods PLC shares jumped 3.1% after announcing an increase in dividends and reports of improved financial forecasts for 2017. Shares of L’Oreal SA rose after the French cosmetics manufacturer reported a 8% increase in revenue in the first quarter. The growth was driven by strong sales in Asia and North America. Shares of Burberry Group PLC fell -5.4% after reporting a drop in main income of 16.1 billion pounds in the first quarter. Zalando SE shares fell by -5% after reports that the adjusted earnings for the first quarter were at about the same level as a year earlier, despite revenue growth. Italy’s trade balance in February is 1.880 billion, with a forecast of 2.240 billion. The eurozone consumer price index in March (g / g) rose by 1.5%, which corresponds to analysts’ forecasts. The eurozone consumer price index in March rose by 0.8% compared to the previous month, which is in line with analysts’ forecasts. Eurozone’s trade balance in February is 17.8 billion, with a forecast of 16.2 billion.
Review prepared by Fort Financial Services analytical department. Follow our publications!