By Vincent Mivelaz
European markets closed in red territory on Tuesday following a decrease in early trading session and moving in different directions after Powell’s testimony in the afternoon, reinforced by weaker Consumer Confidence and Consumer Price Index data published the same day. European Euro Stoxx 50 closed at 3’458 (-0.15%), hampered by Real Estate (-1.55%), Materials (-1.35%), Consumer Staples (-1.25%) and Telcos (-0.97%) while supporters were IT (+0.61%) and Financials (+0.56%).
European market places followed the same trend, closing at 7’282 (-0.10%) for FTSE 100, 12’491 (-0.29%) DAX, 5’344 (-0.01%) CAC 40, 22’724 (+0.08%) FTSE MIB and 9’900 (-0.02%) IBEX 35. EUR/USD slightly declined, trading at 1.2234 (-0.67%) following Powell’s speech that gave a real boost to the greenback against all major currencies while GBP/EUR, EUR/CHF and EUR/JPY are trading at 1.1363, 1.1508 and 131.05. European Bond yields gain ground, as the 30-year, 10-year and 2-year are estimated at 1.319 (+1.53%), 0.680 (+4.23%) and -0.521 (+3.08%).
February Consumer confidence in euro zone decreased at 0.10, falling from January 17-year high at 1.40 while German and Spanish Preliminary Consumer Price Index Y/Y were given at 1.40% (consensus: 1.50%) and 1.10% (consensus: 0.90%), showing signs of continuing growth, as uncertainties regarding euro zone reforms, Italian elections and German GroKo are cooling down.