Yahoo Finance Mixed Reactions from Major European Indexes, Crude Prices Rise
Asian and European Markets Are Mixed, Fed Starts Its 2-Day Meeting
European indexes are mixed
Critical European markets (DBEU) were trading on a mixed bias on April 26, 2016. There wasn’t a major data release from European markets (HEDJ) on Tuesday. Investors are waiting for Germany’s consumer confidence, the United Kingdom’s gross domestic product growth, and the Fed policy decision scheduled for April 27, 2016. The rebound in some of the European indexes towards to the end of trading was due to the rise in crude oil prices. Crude oil futures rose by nearly 1.5%.
Specifically, the SPDR Euro Stoxx 50 ETF (FEZ) was trading 0.28% higher at 9:00 AM EST. The German DAX and French CAC 40 were trading nearly flat with a slight fall of 0.04% and 0.18%, respectively.
In non-Eurozone markets, there was positive movement. The United Kingdom’s (FKU) FTSE 100 traded 0.34% higher. Sweden’s (EWD) OMX Stockholm 30 rose by 0.18%
Pound and euro gain against the US dollar
The euro and pound sterling registered heavy gains during early trade on April 26. The euro-US dollar currency pair rose by 0.51% to 1.13 at 10:00 AM EST. The pound-US dollar pair’s gains were more compounded. It rose by nearly 1.0% to 1.46. The rise in the currencies was due to investors’ sentiments about possibly not having a Brexit scenario. The pound’s rise to near a two-month high was also due to weak durable goods data released from the US. It put more pressure on the Fed to keep the rates unchanged at the ongoing meeting.
Impact on ADRs
Among the major European ADRs (American depositary receipts), German major SAP (SAP) was trading lower. It fell by 0.83% as of 10:00 AM EST. Other ADRs were trading on a mixed bias. Anheuser-Busch Inbev (BUD) fell by 0.24%. CRH (CRH), an Irish construction company, rose by 1.7%. Finnish telecom company Nokia (NOK) was trading 0.68% higher.
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