On Wednesday (May 15th), the rebound in the global market has disappeared during the European period. Europe's major stock indexes rose weakly, while the euro remained in a downtrend.
As of this release, the UK's FTSE 100 index rose by 0.074%, while the German DAX index and the French CAC index fell by 0.50% and 0.44%, respectively.
Data released today by China showed that industrial production growth slowed, with an increase of 5.4% in April, down from 8.5% and expectations in March. This made the European stock market depressed after the opening.
From the perspective of Europe itself, GermanyGDPThe first quarter increased by 0.4%, the first increase since the second quarter of 2018, and also in line with expectations. Investors think this means that the previous concerns are overstated.
But economists also warned that Germany's strong start this year is unlikely to continue in the second quarter. Capital Economics economist Andrew Kenningham reminded investors to be cautious because the data from the forward-looking business survey was poor, and the data for the first quarter was mostly boosted by the temporary increase in the construction industry. Oliver Rakau of the Oxford School of Economics also believes that it is still too early to judge the German economy.
On the other hand, the Italian populist government is raising new concerns in the European market. Matteo Salvini, the leader of the far-right party, said yesterday that his government is ready to break the EU's fiscal rules, which may renew tension between the EU and Italy. "If we need to break some restrictions, such as 3% or 130-140%, we will do this." Salvini said that he is referring to the EU's fiscal deficit and debt restrictions.
After the remarks were issued, Italian government bonds and stock markets fell. The FTSE Milan index has so far fallen by 1.06% so far, the largest decline in Europe's major stock indexes.
In the euro, the euro/dollar rose during the Asian session today, but it was eventually blocked near 1.20 and turned down.
EUR/USD hourly chart source: FX168 Financial Network
(Article source: FX168)