Stocks Rise as Profits Take the Centre Stage – Europe Market Wrap
Following market turmoil caused by a more hawkish view of interest rates, positive earnings from some of Europe’s largest firms helped to calm the situation.
The Stoxx Europe 600 saw a rise of 0.7%, led by consumer goods and services. S&P 500 futures gained 0.5%, indicating a possible comeback on Wall Street following the gauge’s third consecutive day of losses on Tuesday, which saw it close close to a two-month low. Nasdaq 100 futures tipped upward. Treasury rates fell from a top set for 2024, while a measure of the strength of the dollar ended a five-day run of advances that had sent it to a five-month high.
This week has seen a decline in stocks as traders adjusted their expectations over the timing and magnitude of interest rate reductions by the Federal Reserve.
For a fifth day, European natural gas slightly increased. Oil prices dropped as markets anticipated Israel’s response to Iran’s attack over the weekend, with Brent crude dropping below $90 per barrel. Gold stayed quite close to its peak.
Rate Futures show investors now fully pricing in first Bank of England rate cut in November compared with September on Tuesday.
CPI stronger than expected in the UK leads to Sterling strength.
UK CPI YoY Actual 3.2% (Forecast 3.1%, Previous 3.4%).
