(MENAFN– ecpulse)
European stocks were trading lower in early trading hours Friday as investors embrace for more data from the US expected to support the case for Fed tapering as they meet next week.
Investors are cautious with the end of the week as the focus return to the outlook for global growth as Syria tension subsides. US weekly jobless claims yesterday surprisingly dropped to the lowest since April 2006.
Today investors will closely monitor data from the US as Retail Sales data will be of the last important figures to assess before the Fed’s September 17-18 meeting to discuss monetary policy.
- STOXX 600 is trading lower by 0.31% at 309.77
- STOXX 50 is trading lower by 0.36% at 2851.64
European stocks are little changed as the Eurogroup meets with debt-laden nations back canter stage. Euro area finance ministers are expected to discuss developments in Ireland and Greece.
Struggling Greece might be the focus of talks once again as the nation is said to be in need of another round of funds, with expectations Greece needs around another 10 billion euros to balance its finances, and with the German elections approaching, the fear of more German austerity clinch as more tax payer involvement will trigger another broad wave of risk aversion in barely stabilizing markets, risking to thwart Draghi’s efforts to anchor confidence and money markets normalization.
- DAX is trading lower by 0.30% at 8469.19
- CAC 40 is trading lower by 0.21% at 4098.14
- FTSE 100 is trading lower by 0.33% at 6566.99
- IBEX 35 is trading lower by 0.61% at 8871.40
- FTSE MIB is trading lower by 0.47% at 14771.17
The market has still enjoyed the gains this week with the STOXX 600 heading to the second consecutive weekly gain on easing Syria tension. The developments with Syria are still closely observed even if the risk of an immediate US military action subsided.
In a meeting yesterday with his Russian counterpart Foreign Minister Sergei Lavrov, US Secretary of State John Kerry said after the discussions pledges of Syria`s regime to give up its chemical arms were "simply not enough." The focus on disagreements on the Russian proposal and risk of the US returning to the military option remains in the market as Obama left the military action option on the table if they exhaust diplomatic efforts.
We need to keep a close tab on markets with the tapering bets now the main focus. Investors are betting the Fed will decide to withdraw some of the $85 billion monthly purchases as they meet next week which is keeping pressure on equity markets.
Retail Sales report from the United States is due at 12:30GMT and expected to show sales continued to rise in August.
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