The Stoxx 600 managed to eke out a small gain yesterday and looks set to open slightly higher today amid continued pressure on the euro.
European index futures are in the green except France. The DAX may get a boost from strong results at Siemens and Deutsche Telekom. However, Siemens also serves as a reminder that Trump’s exit from the Iran nuclear deal may weigh on shares of companies doing business with Iran. The bounce back in oil could help energy producers.
Weaker-than-expected French industrial and manufacturing data isn’t doing the euro any favors. The report is for March, and the narrative of a 1Q soft patch is already firmly established. But on a day when the dollar is on the front foot, this data miss offers no comfort to euro bulls who are probably heading to the exits as EUR/USD hits the lowest level since mid-December.
Source: Bloomberg Pro Terminal
Trader Aleksandar Kumanov