FTSE 100 LATEST NEWS & TECHNICAL ANALYSIS – Capital Street FX
EUROPEAN STOCKS HIGHER; EUROZONE PPI DATA DUE
European stock markets climbed higher Tuesday, building on the previous session’s positive start to the new quarter.
By 03:45 ET (07:45 GMT), the DAX in Germany traded 1.9% higher, the CAC 40 in France rose 2.3%, and U.K.’s FTSE 100 climbed 1.1%.
European equities have started the new quarter on an upbeat note, bouncing after the sharp losses of the third quarter caused by concerns over slowing growth and aggressive monetary policy tightening.
Helping the tone was the decision of the U.K government to reverse proposed tax cuts for top earners. That said, this only rules out a small percentage of the planned 45 billion pounds of unfunded tax cuts announced last week, and seriously undermines the authority of both the Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng.
Also helping sentiment was Australia’s central bank raising interest rates by a smaller-than-expected 25 basis points earlier Tuesday.
The economic data calendar is largely empty Tuesday, although investors will keep an eye on the August Eurozone PPI for further clues on the inflationary pressures in the region. The index is expected to rise 4.9% on the month and to be up 43.1% on an annual basis.
In corporate news, Greggs (LON:GRG) stock rose 8% after the British fast food chain showed resilience against the backdrop of a worsening cost of living squeeze, with its total sales rising 14.6% over the 13 weeks to Oct. 1 year-on-year.
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