The rise in oil prices and weakening in the USD amid uncertainty about the increase in the US interest rate, have increased risk aversion among investors. The continuing rise in the American stock indices triggers the rise in European indices since April, despite poor performance of the European economy.

ZEW index of current economic conditions in Germany, which was released today, was lower than expected. (47.7 against the forecast of 51.0 and 50.7 in March). However, ZEW economic sentiment index was better than expected (11.2 against the forecast of 8.0 and 4.3 in March). This fact provided support to the European stock indices including DAX30. ZEW index of business expectations in Eurozone for April was also above the forecast. (21.5 against the forecast of 13.9 and 10.6 in March).

However, market participants are still wary about the situation in European economy, as efforts of ECB to improve economic situation and accelerate inflation in Eurozone have not produce much positive results. Recovery of European economy also depends on the outcome of the British referendum at the end of June. Exit of the UK from the EU will have strong impact on the British and European stock markets, as both economies have strong connections.

In the speech of the head of the Bank of England, which is scheduled for 16:35 (GMT+2) today, Mr. Carney is likely to touch upon monetary policy issues and prospects of the British economy. Any critical statements by Mr. Carney will have effect on the indices movement in the London stock exchange including the Pound in the cross-pair EUR/GBP. European financial market and the index DAX30 will be affected too.

DAX30: World stock indices are growing

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