A disappointing eurozone GDP reading was countered by a better than forecast inflation figure, flattening out the potential reaction to either number.
At 0.3% the Eurozone growth reading not only underperformed expectations, but fell short of the 0.4% managed in the first quarter. Yet the euro-damaging nature of that number was tempered by the news that inflation hit 2.1% in July, the metric crossing the ECB’s long-held 2.0% target for the first time since 2012 (the core CPI figure rose to 1.1%).
With the data cancelling each other out the euro couldn’t do much as the day went on, the single currency climbing 0.1% against the dollar while sitting flat against the pound. The eurozone indices were similarly dull; overcoming a serious mid-morning wobble, the DAX dipped 0.1% while the CAC managed to rise by the same amount.
As for the FTSE, Tuesday’s slew of poorly-received trading updates from constituents Just Eat(LON:JE) (LON:JE), Centrica (LON:CNA), Rentokil Initial(LON:RTO) (LON:RTO) and Standard Chartered (LON:STAN) meant the index couldn’t take flight. However, it did still climb 25 points, leaving it with a decent chance of ending July out of its recent 7650-7700 trading bracket and near a month and a half high.
The Dow Jones – which continued to pull back from last week’s 25600-teasing 5 month peak on Monday, slipping under 25350 – isn’t looking to do much this Tuesday. The futures have the Dow rising just 0.1% after the bell, the index perhaps tentative ahead of the evening’s Q3 results from Apple (NASDAQ:AAPL), not to mention Wednesday’s Fed meeting. There’s plenty of data to tide investors over in the meantime, with the afternoon throwing up the core PCE price index alongside the Chicago PMI and CB consumer confidence readings.
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