European Equities Rose, With DAX 1.0% Up
European shares rose, boosted by some strong earnings updates and a rising tech sector, while investors' focus turned to Eurozone GDP figures and the US Fed meeting. The benchmark DAX is 1.0% higher, at 12,738.
The preliminary estimate from Eurostat showed the Eurozone economy expanded at a slower pace in the first quarter, with gross domestic product growing 0.4% sequentially, slower than the 0.7% expansion seen in the fourth quarter. However, that was in line with expectations. On a yearly basis, economic growth eased to 2.5%, as expected, from 2.8% in the fourth quarter.
Activity in the UK construction sector rose at the fastest pace in five months in April, brightening the economic outlook for the second quarter. UK construction PMI increased to 52.5 in April, compared to forecasts for a reading of 50.5.
German manufacturing grew at the slowest pace in nine months in April, as new-orders growth slowed for the fourth consecutive month. Germany’s manufacturing PMI, which accounts for about a fifth of the economy, fell to 58.1 from 58.2 in March. Meanwhile, Eurozone manufacturing PMI also fell to 56.2 in April from 56.6 in March.
The Federal Reserve should begin a two-day meeting on monetary policy on Wednesday. Market expectations suggest that there will be no new rate hikes in the US, but analysts will be looking for guidance as to whether this will happen in the near future.