European stocks are slightly up, with Eurozone PPI data in view. Tuesday saw a small increase in equity markets as investors are confident despite worries.
European stocks and markets remain optimistic
Investors have stayed fairly upbeat at the start of the new quarter amid the shock of an increase in oil prices. A group of major producers chose to reduce production levels. European equities recorded healthy gains over the first quarter of the year.
The DAX indicator, the CAC 40, and the FTSE 100 all traded 0.1% higher at 03:40 ET (07:40 GMT).
The European stocks take a bet of pause in the rate increase cycle after RBA’s decision
Fears of a worldwide recession increased this week. As data revealed that industrial activity in the U.S., the eurozone, and the U.K. continued to decline through March. While high oil prices are likely to worry central banks who are already concerned about high inflation levels. This week’s data also contributed to these worries.
Investors are becoming more confident that the US Fed is very close to taking similar action to RBA’s decision. To end its year-long rate-hiking cycle The price movements for short-term interest rate futures reflect the desires
ECB is going contrary to RBA and market assessment
The ECB is moving in the opposite direction after raising interest rates by 50 basis points last month. President Christine Lagarde said this past week that underlying inflation is still “considerably too high.” And she hinted at future increases.
German exports showed the highest monthly increase since June in Feb. According to data published earlier Tuesday, lending to the evidence that the euro zone’s biggest economy could avert a recession in the first quarter of the year. Statistics will likely determine how far the ECB goes.
Eurozone PPI in focus
Now everyone’s attention will be on the publication of the PPI for the eurozone for Feb later today This is anticipated to indicate a 0.3% monthly decline, with a 13.3% yearly increase rate. Compared to 15.0% the previous month. After months of discussions, L’Oréal (EPA: OREP) finally decided to purchase Australian skincare company Aesop in a deal worth $2.5 billion. Sending its stock up 0.3% in the corporate market.
Forex Price movements
Tuesday saw the euro hit its highest level in two months and the GBP reaches a new 10-month top vs the dollar. As market expectations that the U.S. rate-hike trend is about to come to an end – kept weighing on the greenback.
The value of the GBP rose to $1.2475, the highest point since June 2022, and was last close to it, up 0.4 percent. The euro last increased 0.17% to $1.0921. After reaching $1.0938, the highest price since the beginning of the month.
Gold prices also decreased 0.2% to $1,997.25/oz,
