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European markets up on earnings and expectations of ECB rate cut

FXstreet.com (Barcelona) - The German DAX 30 (+0.24%), the French CAC 40 (+0.38%), the British FTSE 100 (+0.16%) and the Spanish IBEX 35 (+0.26%) are edging higher on Wednesday on earnings season and as investors price in expectations of a ECB rate cut after one more disappointing indicator. The Italian FTSE MIB is down by -1.00%, pressured by financial stocks.

The German IFO survey came in lower than expected for the April report: drop from 106.7 to 104.4 in business climate (consensus of 106.2), fall from 109.9 to 107.2 in current assessment (consensus of 109.5) and drop from 103.6 to 101.6 in expectations (consensus of 103.0). “So with France looking a touch better but still very weak into April, and German surveys heading lower again, we think that will be enough to get the ECB debating the potential for up to 50bps of cuts, but actually delivering a 25bps cut to the refi rate in May and leave the debate for further action until June”, wrote TD Securities analyst Jacqui Douglas.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones are signaling a higher opening by +0.15% ahead of more earnings reports and US durable goods orders, expected to fall by -2.8% in March but to rise by 0.5% excluding transportation.

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