European indices trim losses on ZEW, Fed back in spotlight

By FXStreet FXStreet (Mumbai) – The recovery in the European indices extends during the mid-European session, as investors digest the German ZEW data, with traders in London trading cautious after fresh inflation figures.

Fed decision takes centre-stage

However, upside seems limited as markets refrain from creating fresh positions ahead of the Fed gathering that starts tomorrow, creating some nervousness on the market.

The German benchmark, the DAX pared most losses following mixed ZEW surveys which showed that the September ZEW economic sentiment deteriorated to 12.1 points, a 10-month low, after August’s 25. The market had bet on 18.3 points. However, the Current Situation Index increased to 67.5 points this month from 65.7 before, better than estimates for 64 points.

While earlier this session, the UK CPI print offered some respite to the UK traders, matching estimates. The UK CPI report showed no growth in August y/y, after the 0.1% rate previously. The rate of core inflation in Britain slowed to 1% in August, down from 1.2% in July.

Germany’s DAX 30 index pared losses and now trades-0.17% lower at 10,114, while the UK’s FTSE 100 index drops -0.49% to 6,056. Among the other indices, the French CAC 40 index trades muted at 4,518, while the …read more

Source:: FX Street