European equities experienced a general uptick on Monday, setting the stage for a bustling week filled with corporate earnings and economic data releases.
On Wednesday, the Eurozone is slated to disclose its preliminary flash GDP figures, along with consumer confidence and economic sentiment metrics. These insights are highly anticipated as investors seek indicators of the European Central Bank's future stance on interest rate adjustments.
Meanwhile, eurozone bond yields edged upward, and the British pound remained relatively stable. This occurs as the market braces for the unveiling of the inaugural budget by British Prime Minister Sir Keir Starmer's administration on Wednesday. Additionally, attention is focused on the forthcoming monthly U.S. employment data set for release on Friday.
As the UK Budget approaches, a recent survey indicates that business confidence in the U.K. has slipped to a four-month low in October.
Markets reacted accordingly, with the pan-European STOXX 600 index advancing by 0.4%, reaching 520.64. This marks a recovery after closing with a slight negative trend last Friday. Germany's DAX index rose by 0.5%, France's CAC 40 saw a 1% increase, and the FTSE 100 in the UK climbed by 0.1%.
In contrast, the energy sector faced declines. In London, BP Plc saw a decrease of 1.7%, and Shell dropped over 2%, as crude oil prices fell to four-week lows amid reduced concerns over potential conflict in the Middle East. Investors found some relief as Israeli military activities over the weekend notably did not target Iranian oil facilities, which are integral to OPEC's production.
Significant stock movements included Philips, whose shares plummeted by 16% following a downward revision of its annual sales forecast. The Dutch medical device firm attributed this adjustment to weakening demand from consumers and hospitals in China. Similarly, KPN, a telecommunications provider, dipped nearly 2%, despite affirming its financial outlook for 2024.
On a more positive note, Eurofins Scientific SE in Paris rose by 1.7%. The bio-analytical testing company announced an agreement to acquire Synlab’s clinical diagnostics operations in Spain, though the transaction details remain undisclosed.
