European markets fall, US futures set for a rebound

FXstreet.com (Barcelona) - The German DAX 30 (-0.51%), the French CAC 40 (-0.60%), the Italian FTSE MIB (-0.31%) and the Spanish IBEX 35 (-0.43%) are down, like the rest of European equity indexes, on disappointing economic sentiment in the Eurozone and Germany. The ZEW survey showed a decline in EMU economic sentiment, from 33.4 to 23.9 in April. In Germany, economic sentiment disappointed the market, falling from 48.5 to 36.3, below the expected 42.0. Current situation wasn’t good either, dropping from 13.6 to 9.2, below 12.0 consensus.

The EMU Consumer Price Index was released today. The Consumer Price Index in the Eurozone came in line with expectations, at 1.2% (MoM) and 1.7% (YoY) in March, while Core data rose from 1.3% to 1.5%, beating 1.4% consensus. The ZEW survey showed a decline in EMU economic sentiment, from 33.4 to 23.9 in April. In Germany, economic sentiment disappointed the market, falling from 48.5 to 36.3, below the expected 42.0. Current situation wasn’t good either, dropping from 13.6 to 9.2, below 12.0 consensus.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones are signaling a higher opening between 0.50% and 0.60%, set to rebound from the worst drop in five months ahead of US CPI, Housing Starts and Industrial Production. “We expect headline CPI to rise by +0.1%/mth, following the chunky +0.7% rise the month before. On an annual basis, favorable base effects lower the rate from 2.0% to 1.7%/yr (mkt 1.6%)”, wrote TD Securities analyst Annette Beacher, expecting also a relatively subdued Core CPI, at +0.2%/mth and 1.7%/yr (mkt 2.0%).