European markets buoyed by growing bets on a Fed rate cut

[Global Business Strategy on Digital Display]
Tom Werner

London (UKX [https://seekingalpha.com/symbol/UKX]) +0.09% to 9,216, lagging behind European peers after seeing a rally in momentum last week.

Germany (DAX:IND [https://seekingalpha.com/symbol/DAX:IND]) +0.68% to 23,756. Germany records lower-than-expected trade surplus in July. [https://seekingalpha.com/news/4492932-germany-records-lower-than-expected-trade-surplus-in-july#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

France (CAC:IND [https://seekingalpha.com/symbol/CAC:IND]) +0.18% to 7,689, as investors prepared for Prime Minister Francois Bayrou’s confidence vote on Monday.

Slovakia’s trade surplus widened to €246.5 million in July.

Construction output in the Czech Republic increased by 10.1% Y/Y in July.

Lithuania’s annual inflation rate rose to 4.0% in August.

The pan-European Stoxx 600 [https://seekingalpha.com/symbol/STOXX] (STOXX) [https://seekingalpha.com/symbol/STOXX] turned 0.24% higher to 550.5, benefiting from expectations that the Fed will cut interest rates this month, while investors kept a close watch on political developments in France. The euro traded above $1.17, holding near its strongest level since late July.

IN THE BOND MARKET, the U.S. 10-year Treasury yield was down less than 1 basis point to 4.08%.

Germany's 10-year yield was down less than 1 basis point to 2.65%.

UK's 10-year yield was almost flat at 4.65%.

CURRENCIES: (EUR:USD [https://seekingalpha.com/symbol/EUR:USD]) (GBP:USD [https://seekingalpha.com/symbol/GBP:USD]) (CHF:USD [https://seekingalpha.com/symbol/CHF:USD])

ETFS: (NYSEARCA:EWG [https://seekingalpha.com/symbol/EWG]), (NYSE:GF [https://seekingalpha.com/symbol/GF]), (NYSEARCA:EWI [https://seekingalpha.com/symbol/EWI]), (NYSEARCA:EWQ [https://seekingalpha.com/symbol/EWQ]), (NASDAQ:FGM [https://seekingalpha.com/symbol/FGM]), (NASDAQ:DAX [https://seekingalpha.com/symbol/DAX]), (NYSEARCA:FLGR [https://seekingalpha.com/symbol/FLGR]), (NYSEARCA:FXB [https://seekingalpha.com/symbol/FXB]), (NYSEARCA:EWU [https://seekingalpha.com/symbol/EWU]), (NASDAQ:FKU [https://seekingalpha.com/symbol/FKU]), (BATS:EWUS [https://seekingalpha.com/symbol/EWUS]), (NYSEARCA:FLGB [https://seekingalpha.com/symbol/FLGB]), (NYSEARCA:GREK [https://seekingalpha.com/symbol/GREK])

MORE ON EUROPE

* EUR/USD Breaks Channel As Rate Cut Bets Ramp Up... Potential 370 Pip Rally Incoming? [https://seekingalpha.com/article/4820120-eur-usd-breaks-channel-as-rate-cut-bets-ramp-up-potential-370-pip-rally-incoming]
* The Second Inflation Mountain: Real Risk Or Overblown Fear? [https://seekingalpha.com/article/4819109-the-second-inflation-mountain-real-risk-or-overblown-fear]
* EUR/USD Price Steadies As Traders Weigh Politics And U.S. Data Risks [https://seekingalpha.com/article/4816909-eurusd-price-steadies-as-traders-weigh-politics-and-us-data-risks]
* EU reportedly weighs new sanctions on Russia targeting banks and oil trade; crude prices rise [https://seekingalpha.com/news/4492940-eu-reportedly-weighs-new-sanctions-on-russia-targeting-banks-and-oil-trade-crude-prices-rise]
* Germany records lower-than-expected trade surplus in July [https://seekingalpha.com/news/4492932-germany-records-lower-than-expected-trade-surplus-in-july]