The pan-European STOXX 600 closed 0.4% higher after logging its first weekly decline in three
Europe’s main stock index closed higher on Monday as gains across most sectors outweighed the weakness in energy stocks on a decline in oil prices, with investors looking for key economic data and U.S. tech earnings scheduled for later in the week.
The pan-European STOXX 600 closed 0.4% higher after logging its first weekly decline in three.
The energy sector stumbled 1.3% to a near two-week low as oil prices slipped after Iran downplayed Israel’s retaliatory strike over the weekend.
On the flip side, construction and materials and media led the charge among sectoral gainers.
Travel and leisure sector, which houses airline stocks such as Lufthansa and easyJet also rose as lower oil prices translate to bigger profit margins for airlines.
France’s CAC 40, which reached a one-week high, and Spain’s IBEX 35 index were the top gainers among regional bourses.
In the face of an improving inflation trend and economic concerns that prompted an ECB interest rate cut earlier this month, the bloc’s third-quarter GDP and October inflation data this week will be at the top of investors’ radar.
We are making major downward revisions to our ECB interest rate forecast, the bank will implement back-to-back 50 basis points cuts in December and January, Capital Economics’ Europe team noted.
The team highlighted its expectations of weak economic growth at the start of the fourth quarter, concerns over a loosening labour market and slowing wage growth, and significant inflation risks over the next two years.
Other factors likely to set the tone for European markets include earnings from U.S. tech companies such as Apple and Microsoft this week and the November 5 U.S. Presidential elections.