European stocks started the week’s trading on a positive note, Monday, supported by gains in the financial and mining sectors, while investors remained risk averse amid the potential for escalation of the conflict in the Middle East.
The European STOXX 600 index rose 0.2 percent at the close, with mining and retail stocks leading the gains.
Israeli forces continued to bomb Gaza on Monday, after diplomatic efforts failed to arrange a ceasefire to allow foreign citizens to leave and bring aid into the besieged Palestinian enclave.
The European STOXX volatility index reached an eight-week high earlier in the session.
The mining index rose 1.8 percent as prices of basic metals rose thanks to hopes of increased demand from China.
The index’s gains were also boosted by a 2.4 percent increase in SSAB shares after JP Morgan raised the rating on the Swedish steel company’s shares.
Shares of financial companies increased 1 percent, with UBS shares rising 1.9 percent after Canadian bank RBC raised the rating on the Swiss bank’s shares.
Concern about the strength of the labor market in the euro zone and fears of conflict in the Middle East have put investors on edge recently, although statements by policymakers at the US Federal Reserve regarding monetary easing have allayed some fears.
The British Financial Times Index rose 0.6 percent.
2023-10-16 17:13:17
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