On Monday, European markets rose on expectations of a Chinese demand recovery. Industrials and Telecom Italy lost ground while mining gained.
Ahead of this week’s economic report, the pan-European STOXX 600 index (.STOXX) gained 0.1%.
Key Resource Index (.SXPP) rose $2.4 billion as base metal prices rose in anticipation of Chinese bulk customer demand and global mining supply disruptions.
Global markets were static for much of the week, with better-than-expected US inflation statistics supporting the Federal Reserve’s conclusion that aggressive rate hikes have failed to lower prices.
Daniela Hathorn, senior market analyst at Capital.com, said, “It seems like a brief halt to examine the situation, and there is no clear trajectory.”
The most recent statistics indicating that the U.S. economy may not be weakening as much as we believed, is still puzzling.
Thus, people are still attempting to determine what this implies.”
On Monday, which was the Presidents Holiday in the United States, price-sensitive technology stocks (.SX8P) declined 0.3% and 0.6%, respectively. Thus, restricting advances for the STOXX 600.
Telecom Italia dropped 2.7% over the weekend . Following a government-backed offer on competitor KKR for the former phone monopoly’s lucrative network failed.
Also, the EURO STOXX Index (.STOXXE), which measures the performance of the top firms in the eurozone declined 0.1%.
On the economic front, consumer confidence in the eurozone increased by 1.7 points in February. Compared to January, as expected.
The Bundesbank said that Germany’s economic outlook is improving after an unexpectedly robust fourth quarter. Also, headline inflation has reached its high. Although, it will take longer for inflationary pressures to abate.
The value of Austrian Raiffeisen Bank International (RBIV.VI) has decreased by over 7 points.
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