European stocks rise for third straight session

Chris Beauchamp IG

''Solid growth data out of Japan and the UK, followed by strong US retail sales, helped stock indices to their third straight day of gains", says Axel Rudolph, Senior Technical Analyst at online trading platform IG.

European indices see third straight day of gains

"A better-than-expected Q2 GDP rebound in Japan - the strongest since Q1 of 2023 - led to an over 2% gain in the country's recently battered stock index. A slowing UK economy following Wednesday's US sub-3% yoy inflation print and Thursday's strong US retail sales - rising the most in a year - keep rate cut expectations on both sides of the Atlantic firmly on track. The UK's FTSE 100 and its European peers benefitted and rallied by around 1% to see a third consecutive day of gains following last week's sharp sell-off. 2 and 10 year UK and US yields rose by around 10 bps on the day as well."

US Dollar appreciates post strong US Retail Sales

"The greenback regained recently lost ground as it appreciated across the board, following stronger-than-expected US retail sales. The rise in the Us dollar took the wind out of the gold price's sails but didn't negatively affect the price of silver, nor that of Brent crude oil, both of which recovered from recent weakness."

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Chris Beauchamp

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