On Tuesday, most European stock indexes traded down, amid investor concerns about the political situation around Syria and North Korea. At the same time, high oil prices and rising gold prices were able to limit the negative dynamics in the market. The G-7 foreign ministers met on Tuesday for talks on Syria after the US launched a missile attack on the Syrian air base on Friday. In addition to the settlement of the Syrian conflict and the possible imposition of sanctions against Russia for supporting the regime of Bashar al-Assad, the ministers discussed the growing tension in connection with the regular rocket tests of the DPRK. After the US attack on Syria, North Korea announced that it would defend itself with all kinds of weapons they had. The United States, in turn, continues to send ships toward the Korean Peninsula. The growth of political tension increased the demand for asylum assets such as gold, which led to an increase in the shares of companies producing precious metal. Shares of Randgold Resources PLC jumped 1.9%, while Centamin PLC added 0.9%. The British pound and the European currency strengthened slightly against the US dollar, after data published in the UK showed a steady increase in inflation in March. Inflation accelerated in recent months, under pressure from Brexit and rising oil prices. These same factors fuel inflation in the euro-zone and other European countries. The US dollar has weakened slightly, as traders began to doubt the possibility of a Fed raising interest rates at the next meeting. Recent speeches by Fed officials including Yellen did not contain hints on the timing of the interest rate increase. During yesterday’s speech, Yellen reported that the Fed’s plans to gradually increase interest rates are aimed at maintaining full employment and inflation to a target level of 2%, preventing the economy from overheating. Oil prices are holding near the one-month high, entrenched during yesterday’s trading. An additional impetus for growth was the attack of militants on a pipeline in Libya, which could lead to a decrease in exports. LVMH Moet Hennessy jumped 1.2% after the company reported a 15% increase in first-quarter sales. The basic index of selling prices of UK producers rose by 0.3% in March against the previous month, while the growth forecast was 0.2%. The consumer price index in the UK in March rose by 0.4% compared to the previous month, with a growth forecast of 0.3%. The index of purchasing prices of manufacturers in the UK in March rose by 0.4% compared to the previous month, with the forecast decline of -0.2%. The UK producer prices index rose by 0.4% in March against the previous month, while the growth forecast was 0.1%. The UK retail price index (RPI) rose by 0.3% in March against the previous month, while the growth forecast was 0.4%. The index of economic sentiment ZEW in Germany in April 19.5, with the forecast of 14.0. The volume of industrial production in the euro-zone in February fell by -0.3% compared to the previous month, while the growth forecast was 0.1%. The index of economic sentiment of the Euro-zone from ZEW 26.3, with the forecast of 25.0.
FTSE 100 7,380.93 31.99 0.44% DAX 12.180.83 -19.69 -0.16% CAC 40 5.102.49 -4.96 -0.10% FTSE MIB 20.110.77 -91.28 -0.45% IBEX 35 10.402.10 -35.60 -0.34% Stoxx 600 381.13 -0.12 -0.03%% p>
Review prepared by Fort Financial Services analytical department. Follow our publications!