Market update: European markets weaker after reaching five-year high last week – 13.05.2013

Source: Henderson Global Investors

Last Friday US stock markets closed at record highs (S&P 500 +0.4%, Dow Jones +0.2%, Nasdaq +0.8%), posting a third consecutive weekly gain. Federal Reserve Chairman Ben Bernanke’s speech at a conference hosted by the Chicago Federal Reserve did not reveal any further detail on the central bank's stimulus measures or its economic view, but did mention that they are keeping an eye on potential issues caused by low interest rates. Key US economic reports to watch out for this week include monthly retail sales (Monday), Empire manufacturing report and industrial production (Wednesday). On Thursday inflation and housing starts data are released.

Early this morning both the FTSE Eurofirst 300 and FTSE 100 are in the red (both -0.2%). Today’s Eurogroup meeting will see the region’s finance ministers discussing whether to approve the next payment tranches as part of bailouts for Greece and Cyprus; Portugal is not expected to receive any objections for its next tranche. German lender Commerzbank is the largest faller on the DAX following reports that a rights issue this week may be offered at a steep discount owing to lack of demand. Key European data this week include the German ZEW economic sentiment survey and euro area industrial production (Tuesday), flash Euro area Q1 gross domestic product (Wednesday) and euro area inflation (Thursday).