[런던=뉴스핌] Correspondent Jang Il-hyeon = On the 28th (local time), stock markets in major European countries rose simultaneously. This is due to a decrease in geopolitical instability in the Middle East as the possibility of a full-scale conflict between Israel and Iran decreases. The atmosphere also reflected expectations ahead of the performance announcements of big American tech companies scheduled for this week.
The STOXX600 index, a pan-European index, closed at 520.95, up 2.14 points (0.41%) from the previous day. This index recovered to the 520 level in 4 trading days since the 22nd. The energy sector (-1.33%) showed weakness due to the fall in international oil prices, but it did not pay attention and continued to rise.
The DAX index of the Frankfurt stock market in Germany closed at 19,531.61, up 68.03 points (0.35%), and the CAC40 index of the Paris stock market in France closed at 7556.94, up 59.40 points (0.79%).
The FTSE 100 index of the London stock market also closed at 8285.62, up 36.78 points (0.45%).
The FTSE-MIB index on the Milan stock market in Italy closed at 35,016.44, up 240.34 points (0.69%), and the IBEX35 index on the Madrid stock market in Spain closed at 11,904.00, up 91.50 points (0.77%).
On this day, the pan-European benchmark index showed a slight downward trend until mid-day, but showed a strong upward trend as the afternoon passed. NBC analyzed that “European markets showed an upward trend in the afternoon as investors reviewed the geopolitical situation in the Middle East.”
In the early morning of last Saturday (26th), Israel mobilized about 100 aircraft, including the state-of-the-art 5th generation stealth fighter F-35, various fighter planes, reconnaissance aircraft, and aerial refueling tankers, and conducted three large-scale airstrikes against Iran. It was the first Israeli airstrike on mainland Iran.
However, contrary to international concerns, Israel did not touch Iran’s major facilities, such as nuclear facilities and oil refineries, and only bombed military facilities such as the S-300 air defense battery. After the attack, he said, “We achieved our goal 100%,” and indicated that he would not attack again if there was no retaliation from Iran.
Iran also pledged that it would respond appropriately to Israel, but added the proviso, “We do not want war.”
Reflecting this situation, international oil prices fell by more than 6%. The energy sector hit its lowest level in two weeks.
Airlines such as Lufthansa (+2.11%) and EasyJet (+2.72%) all rose in price due to expectations of increased company profits due to falling oil prices, and the travel and leisure sector also rose by 0.73%.
Major U.S. economic indicators to be announced this week, such as employment and prices, are receiving great attention as they are expected to directly affect the interest rate cut trend of the U.S. Federal Reserve (Fed) next month.
The September hiring and turnover report, weekly new unemployment insurance claimants, non-farm employment report, September personal consumption expenditures (PCE), and third quarter gross domestic product (GDP) are scheduled to be announced.
Investors are also looking forward to the performance announcements of U.S. big tech companies. Five of the M7 Big Tech companies, including Apple, ranked 1st in market capitalization, Microsoft (MS), 3rd, Alphabet, Amazon, and Metaplatforms, will announce their earnings this week.
Alphabet is scheduled to release its third quarter earnings on the 29th, Microsoft and Meta on the 30th, and Apple and Amazon on the 31st.
Inside Europe, the third quarter economic growth rate and October inflation data are attracting investors’ attention.
Capital Economics’ European team said on this day, “We are significantly revising the European Central Bank’s (ECB) interest rate forecast,” and added, “We expect it to be lowered by 50bp (1bp = 0.01% point) in succession in December of this year and January of next year.” .
Notable stocks surged 7% following a Reuters report that Sonova, a Swiss hearing aid manufacturer, would resume supplying to Costco.
Meanwhile, Portuguese energy company Galp fell 5% on news that the drilling schedule for four wells in Namibia, Africa, will be longer than expected.
Dutch medical device company Philips plunged 17% after announcing it would lower its annual sales forecast due to weak demand in the Chinese market. The company announced that it expects sales growth in 2024 to be between 0.5 and 1.5 percent, a significant decrease from its previous forecast of 3 to 5 percent.
