European stock markets closed Monday higher, despite continued volatility in the Middle East, with investors monitoring economic data from Germany and awaiting economic data from the US this week, reports CNBC. Also, the stock exchanges on Wall Street rose spectacularly, while the price of oil fell by 3%, informs News.ro.
The pan-European Stoxx 600 index ended up 0.4%, with most sectors in positive territory, with gains led by healthcare stocks.
The Stoxx 600 is on course to fall 4.6% in October, according to LSEG data, amid weak corporate earnings and concerns about high interest rates for longer than initially thought.
The German DAX index rose by 0.2%, the CAC 40 of the Paris stock exchange by 0.44%, and the FTSE 100 of the London stock exchange by 0.5%. The FTSE MIB index of the Italian stock market advanced by 0.19% and the IBEX 35 of the Spanish stock market rose by 1.07%.
Spectacular increases on Wall Street
Wall Street rose strongly on Monday, buoyed by strong corporate earnings, kicking off what is expected to be a busy week that includes numerous corporate financial reports, economic data and the two-day monetary policy meeting of the U.S. Federal Reserve, reports Reuters.
All three major US stock indexes closed up more than 1 percent, recovering from the previous week’s selloff in stocks.
Interest rate-sensitive megacap stocks led by Microsoft, Amazon.com and Apple provided the biggest gains.
“Today is a return of earnings. The market has been oversold and the reality is that the gains have been pretty good, the US economy is still going strong and is likely to do so in the fourth quarter and the first part of next year,” said Oliver Pursche, senior vice president at Wealthspire. Advisors, of New York.
Oil price down 3%
Oil prices fell more than 3 percent on Monday as fears that the war between Israel and Hamas could disrupt supplies in the region eased and investors turned cautious ahead of the U.S. Federal Reserve’s monetary policy meeting this week. .
Brent crude futures closed at $87.45 a barrel, down $3.03, or 3.35%, while U.S. West Texas Intermediate crude ended the day at $82.31 a barrel, down by $3.23 or by 3.78%.
“The main feature here was the market’s reaction to the events between Israel and Hamas. Macroeconomic factors could easily play out this week as we see if the Fed has anything to say,” said Jim Ritterbusch, president of Ritterbusch & Associates.
Oil prices rose 3 percent on Friday after Israel stepped up ground incursions into Gaza, raising concerns that the war could spread to a region that accounts for a third of the world’s oil production. However, that concern disappeared on Monday, analysts said. “The war premium has left the market. It’s a situation where over the weekend the war seemed to intensify, but there doesn’t seem to be any supply disruption,” said Phil Flynn, analyst at Price Futures Group.
Israeli troops and tanks attacked northern Gaza’s main city from east and west on Monday, three days after it began ground operations in the Palestinian enclave.
Investors are also focused on the outcome of Wednesday’s Federal Reserve meeting, as well as what tech giant Apple’s earnings might indicate about the outlook for an economic slowdown.
2023-10-31 15:40:22
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