European Markets

• Positive sentiment in European markets is being driven by a continued calming of political concerns in Italy and Spain, as well as optimism from strong US employment results released on Friday
• European stocks are higher this morning with the Euro Stoxx 600 up 0.34%, the FTSE 100 advancing 0.60%, the DAX rising 0.08%, and the CAC40 gaining 0.22%
• Utilities (+1.93%), telecommunications services (+1.08%), and consumer staples stocks (+0.88%) were the best performers in the Euro Stoxx 600
• Energy (-0.11%) was the only negative sector in the Euro Stoxx 600. Industrials (+0.08%) and information technology (+0.12%) also underperformed
• Market breadth in the Euro Stoxx 600 is notably positive with 421 companies advancing compared to 147 declines
• Volume across European markets is 25.25% below its 10-day average
• Eurozone’s PPI for April grew 2.0% on a Y/Y basis, below expectations for a 2.3% Y/Y growth rate
• Greece’s 1Q2018 GDP increased by 2.3% Y/Y, more than projected (+2.0% Y/Y forecasted).
• According to a Reuters report, European money markets are now forecasting a 50% chance of an ECB rate increase in June 2019. This is an increase over previous levels, pushed higher by stronger than expected CPI numbers released last week
• There is continued speculation about a potential merger between UniCredit (BIT:UCG) and Societe Generale (ENXTPA:GLE)

What is Going on with European Currencies?

• SEK has risen by 0.95% relative to the USD$, to SEK 0.1144/USD$
• EUR€ is 0.72% stronger against the USD$, to EUR€ 1.174/USD$
• GBP£ has appreciated by 0.34% compared to the USD$, to GBP£ 1.339/USD$

Highlights from the European Bond Market

• Italian treasuries are building on last week’s rally, with yield on Italy’s 10-year bond down 9.1 basis points to 2.548%
• German Bund selling-off, with yields on the German 10-year up 1.5 basis points to 0.394%
• Spanish sovereign treasuries are higher today, and yields on Spain’s 10-year bond are down 5.1 basis points 1.361%
• Yields on France’s 10-year bond are up 1.0 basis points to 0.709%

*Data in Price Return

Euro Stoxx 50 Movers

In local currency.

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