European indexes finish Thursday mixed, FTSE sees minor gains on dovish BoE
- Eurostoxx closes down on weak European data releases.
- DAX manages to hold steady as the German economy leads the EU group.
- FTSE saw a hesitant step upward as BoE signals a possible end of rate hikes.
Thursday’s European market session ended with a mixed bag thanks to the United Kingdom’s (UK) Financial-Times Stock Exchange 100 Share Index (FTSE 100) managing to hang onto intraday gains and close the day up around 0.35% near £7,430.
UK FTSE lifts on dovish BoE Gov Bailey
UK stock markets were potentially relieved to hear from the Bank of England’s (BoE) Governor Andrew Bailey that the peak of the rate hike cycle may have been achieved. Dovish comments from both Governor Bailey and policymaker Swati Dhingra helped to prop up the UK indexes, but the action came at the expense of the Pound Sterling (GBP), which broadly stepped lower on the news.
On the European Union (EU) side of The Channel, the Eurostoxx 50 closed lower, down -0.24% for Thursday. European equities continue to struggle under the weight of consistently underperforming economic data for the region, and growing fears of a slowdown are beginning to sap buying strength across the indexes. The Eurostoxx 50 closed out the day near €4,220.
German DAX holds steady for Thursday
Germany’s DAX index managed to avoid any losses, closing mostly flat on the day near €15,700. With economic data for the broad EU region beginning to show signs of weakness, Germany enjoys the benefit of having the least weak data. Still not good enough to spark confident rallies in the equity indexes, but enough to stave off further moves to the bearish side.
FTSE Technical outlook
The FTSE 100 will be the index to watch as equities grapple with possible policy stance changes from the BoE. Inflation may be bedding back down for the UK, but the technical positioning still leans bearish for the moment.
Current price action is struggling to make a clean break from the declining pattern from August’s start near £7,700, and bullish momentum remains limited from the £7,450 level. Continued short action will see support from August’s lows near £7,250, a level that saw similar technical support back in July.
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FXStreet Team
FXStreet
