DailyFX European Market Wrap: FTSE Pushes to a Three-Week High
Geopolitical risks including Syria, North Korea and the upcoming French elections are driving the markets in Europe as well as UK inflation which holds steady at a three-and-a-half-year high pushing the FTSE to a three-week high.
UK inflation remains at 2.3% for March, with rising prices for food, booze, tobacco, clothing and shoes, and goods and services as the main contributors. These price rises were offset by lower air fare and motor fuel prices, but much of this is the timing of Easter, which this year falls in April, so the rise is likely to be seen in the next set of inflation data.
The latest British Retail Consortium survey said non-food sales fell 0.8% in the January to March period, as shoppers begin to tighten their belts and limit shopping trips to essentials. The report dragged on the retail companies. Talking of retail, JD Sports posted a big rise in profits of 81% in pre-tax profits last year to £238.4m thanks to a surge in demand for its own sportswear ranges.
Oil eases from five-week high on rising US shale production. There’s been a more then 10% increase in crude prices in the past two weeks due to the shutdown of Libya’s biggest oil field, the tensions in Syria and expectations of increased US demand ahead of summer driving season.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.