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22 May 2014
European open higher supported by positive sentiment
FXStreet (Córdoba) - European stock markets opened broadly higher Thursday following the lead of Asian shares, as upbeat Chinese manufacturing PMI boosted market's sentiment.
FOMC minutes released Wednesday also contributed to the positive environment. Minutes of the Fed’s last meeting reassured investors the bank will continue to support the economy. Minutes also showed policy makers had begun to discuss an exit strategy from their easing cycle, but that the discussions were only "prudent planning".
Among European indexes, the Stoxx Europe 600 advanced 0.2%, Germany's DAX 30 index rose 0.2%, while the UK's FTSE 100 index gained 0.3% to 6,839.05 and France's CAC 40 index rose 0.1%.
The improvement in risk appetite weighed on the yen and boosted the greenback across the board. The EUR/USD consolidates below 1.3700 after hitting a fresh 3-month low of 1.3634, while the USD/JPY climbed to a 1-week high of 101.75. Investors are now looking at the Eurozone PMI due later in the day for some immediate catalysts.
Gold traded up 0.6% at $1295/oz, while crude oil was steady near a 2 ½-month high around $104 a barrel.
FOMC minutes released Wednesday also contributed to the positive environment. Minutes of the Fed’s last meeting reassured investors the bank will continue to support the economy. Minutes also showed policy makers had begun to discuss an exit strategy from their easing cycle, but that the discussions were only "prudent planning".
Among European indexes, the Stoxx Europe 600 advanced 0.2%, Germany's DAX 30 index rose 0.2%, while the UK's FTSE 100 index gained 0.3% to 6,839.05 and France's CAC 40 index rose 0.1%.
The improvement in risk appetite weighed on the yen and boosted the greenback across the board. The EUR/USD consolidates below 1.3700 after hitting a fresh 3-month low of 1.3634, while the USD/JPY climbed to a 1-week high of 101.75. Investors are now looking at the Eurozone PMI due later in the day for some immediate catalysts.
Gold traded up 0.6% at $1295/oz, while crude oil was steady near a 2 ½-month high around $104 a barrel.