European stocks rise on betting on falling US inflation
European stocks ended higher as investors bet that US inflation eased in August.
Tomorrow will be published data on the consumer price index in the US. And in Europe, Germany and Spain are also presenting their final CPI data for August.
It was the third high session of the Old Continent benchmark, fueled by the expectation that a slowdown in inflation could cause the US Federal Reserve and other central banks to slow down their monetary tightening.
The Stoxx 600 rose 1.76% to 427.75. All sectors of the European benchmark index rose, with a particular focus on retail, banking and automobiles.
Across Western Europe’s major indexes, Germany’s Dax added 2.40%, France’s CAC-40 rose 1.95%, Italy’s FTSEMIB rose 2.33%, Britain’s FTSE 100 rose 1.66% and Spain’s IBEX 35 jumped 2%. .01%. In Amsterdam, the AEX registered an increase of 1.59%.
“European stocks rose at the start of this new week, extending gains recorded during the Asian overnight session as risk appetite continues to rise globally,” Pierre Veyret, technical analyst at ActivTrades, said in his review of the daily.
“Most indexes made new short-term lows after breaking several intermediate resistance levels last week and are now moving towards new monthly highs as the bullish correction of the late August selloff continues.”
Weire adds that “it is interesting to note that riskier assets continue to rise while the euro is also recovering.” “This is very unusual given the fact that a higher euro usually puts pressure on large export groups in the Stoxx 600 and Stoxx 50 indices, but that is not what we are seeing.”
“It looks like European stocks are being pushed higher by improving global sentiment, while traders have also taken the opportunity to buy into a possible fall in the European currency after the start of the ECB rate hike cycle this week,” he says. .
However, “traders are also preparing for sensitive macro data such as the US CPI tomorrow, the UK CPI on Wednesday and the EU CPI on Friday, which are likely to lead to more volatility in the markets,” he notes.
