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Monday, December 6th, 2021

European markets trade flat despite euro zone growth data revised higher

KEY POINTS
  • European stocks traded around the flatline late on Tuesday morning.

European stocks traded around the flatline late on Tuesday morning despite revised euro zone growth data showing that the region’s economy contracted by much less than expected in the first quarter of the year.

Revised data from the EU’s statistics office Eurostat showed gross domestic product (GDP) in the 19-member euro zone contracted 0.3% quarter-on-quarter, compared with the last estimate predicting a 0.6% contraction.

However, data showing an unexpected fall in Germany’s industrial output in April weighed on sentiment.

TICKER COMPANY NAME PRICE CHANGE %CHANGE VOLUME
.FTSE FTSE 100 FTSE 7096.51 19.29 0.27 141455201
.GDAXI DAX DAX 15676.81 -0.34 0.00 18736434
.FCHI CAC 40 Index CAC 6555.87 12.31 0.19 19913854

 

Globally, investors around the world remain focused on the release of key U.S. inflation data on Thursday. In April, the Consumer Price Index (CPI) rose 4.2% from the previous year, the fastest increase since 2008. Economists are expecting the CPI to have risen 4.7% in May from a year earlier, according to Dow Jones.

If Thursday’s data shows prices continuing to rise in May, traders fear that could cause the Federal Reserve to step back from its loose policies.

Taking a look at other global markets overnight, U.S. stock futures were flat in overnight trading Monday after the Dow and S&P 500 each started the week lower.

Shares in Asia-Pacific were mixed on Tuesday as investors reacted to the release of Japan’s revised first-quarter GDP figures that showed Japan’s economy shrank 3.9% in the first quarter, an improvement from the initial estimate of a 5.1% contraction. The revised gross domestic product compared against economists’ median forecast in a Reuters poll for a 4.8% contraction.

Other data releases in Europe Tuesday include Germany’s ZEW survey of economic sentiment for June, German industrial output for April and U.K. retail sales data for May. There are no major earnings reports.

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