Global Markets Rise as Egyptian Pound Devalued by Central Bank
DAX leads gains in European indexes
Critical European indexes (VGK) were trading on a positive note on March 14, 2016, at 12:00 PM ET. Looking at the performance of the major European indexes, DAX and France’s CAC 40 traded higher by 1.5% and 0.16%, respectively. The EuroStoxx 50 ETF (FEZ) rose by 0.52%.
There was also a moderate positive sentiment in the non-Eurozone markets. The United Kingdom’s (EWU) FTSE 100 and Sweden’s OMX Stockholm 30 rose by 0.53% and 0.34%, respectively. The Italian (EWI) index was the only major European index that was negative, as it fell by 0.48%.
European industrial output grows at a 4-year high
Eurostat published the industrial production data for January on March 14, 2016. The month-over-month industrial production rose by 2.1% against the forecast of 1%. The year-over-year industrial production rose by 2.8% against the forecast of 1.4%.
This rise was primarily attributable to increased production of capital goods, which rose by 3.9%, as well as energy and non-durable consumer goods, which rose by 2.4% each. Among the member countries, the highest increase occurred in Ireland, where industrial production rose by 12.7%. Plus, German (EWG) production rose by 2.9%.
Markets await the UK and SNB monetary policies
The European Central Bank announced further monetary policy easing last week. Now the focus will shift to non-Eurozone members Switzerland (EWL) and the United Kingdom, as their monetary policy meetings are scheduled for March 17.
The Swiss National Bank (or SNB) was initially expected to implement its own rate cut. However, the strengthening of the euro against the Swiss franc after the ECB policy meeting could reduce the pressure on the SNB to go for further cuts. The markets expect the Bank of England to keep the official bank rate unchanged, but the monetary policy summary is expected to come out on a dovish note as the weak domestic data and Brexit worries continue to loom.
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