European markets trading cautiously ahead of Bernanke testimony midweek

<p>European markets were trading cautiously this morning. The FTSE and DAX opened up 0.2% while the CAC and Euro Stoxx were up by 0.1%. The […]</p>

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European markets were trading cautiously this morning. The FTSE and DAX opened up 0.2% while the CAC and Euro Stoxx were up by 0.1%.

The FTSE was topped by Kingfisher and Randgold Resources, while Burberry and Vedanta Resources recorded losses. Citigroup reported positive net income figures for the three months to the end of June.

Looking at the foreign exchange market, the euro and Australian dollar appreciated against the US dollar ahead of Bernanke’s Testimony taking place on Wednesday. The rates were 0.9177 for AUD/USD and 1.3069 for EUR/USD. GBP/USD, on the other hand, was trading slightly lower at 1.5090 this morning.

The outlook for economic events later on today is positive – with the German Investor Confidence Survey expected to come in better than previous figures. Inflation indicated by the Consumer Price Index is expected to hold at the same level for both the eurozone (at 10am BST) and US (at 1.30pm BST). UK CPI figures, however, came out negative just a moment ago.

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