DailyFX European Market Wrap: European Equities Struggle Before FOMC
European markets are struggling this Wednesday ahead of the FOMC meeting with some disappointing earnings from the likes of Sainsbury and the news that ITV’s boss is stepping down.
Sainsbury's reported lower annual profits amid a "challenging" grocery market. Britain’s second largest supermarket also warned that it could be five years before it sees steady growth in earnings.
The boss of ITV is stepping down after seven years. ITV chief executive Adam Crozier is credited with turning around the fortunes of the broadcaster with shows such as Britain's Got Talent.
There have been some positive data reports with the Eurozone’s GDP rising 0.5%, that’s stronger than the UK, which only grew by 0.3%. And its growth rate for the last three months of 2016 has also been revised up to 0.5%, from 0.4%.
Britain’s construction growth has hit a four-month high. Markit’s construction UK PMI, which measures activity across the sector, jumped to 53.1 from 52.2 in March. Driven by faster rises in civil engineering and residential building activity.
Brexit uncertainty continues with the UK’s Brexit Secretary David Davis saying he will not pay a 100bn-euro "divorce bill" to leave the EU, telling Britain’s breakfast show Good Morning Britain that the UK would pay what was legally due, in line with its rights and obligations, but "not just what the EU wants". This follows a report in the financial times that the settlement sought by the EU had risen sharply from 60bn euros to up to 100 billion euros.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.