DailyFX European Market Wrap: Trump’s Speech Soothes European Equities
US President Donald Trump’s speech provides calm for European markets. Despite a lack of detail, Trump still said that he wants to boost the U.S. economy with tax cuts, overhaul the Affordable Care Act and ramp up infrastructure. And the tone of the delivery of the speech was very different to his past performances – which have at times rattled the markets.
British media giant ITV gained after announcing a £200m special dividend with its annual results. This is despite reporting a 14% fall in annual pre-tax profits to £553m as advertising revenues declined by 3%. The broadcaster blamed "wider political and economic uncertainty" for the advertising falls.
Growth in the UK manufacturing sector slowed more than expected in February. The decline in the index came as growth in new orders slowed and backlogs of work fell back. However, the survey also found that almost 50% of manufacturers expect output to be higher in a year's time, compared to only 6% anticipating a decline.
Also in Britain, retail tycoon Sir Philip Green has agreed to pay £363 into the BHS pension fund. And other UK data showed mortgage approvals continue rising. Euro-Zone factories grew at their fastest rate for 70 months in February. The weaker euro is helping to boost demand for exports, and also helping drive inflation higher; German CPI crossed +2% in February.
Looking ahead, preliminary February Euro-Zone CPI data is due on Thursday, as are the Q4 Canadian GDP figures and the February Japanese National CPI report.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.