December 6, 2023
Market’s upcoming week: European stocks rise due to Japan’s rise

European markets started the week on a relatively strong note, following positive sentiment from Japanese stocks.


European stocks opened higher on Monday morning, as investors hoped the US Federal Reserve could nearly complete its monetary tightening cycle. Due to this, the US dollar index fell to an 11-week low of 103.5 on Monday morning.

Strong sentiment in Japanese shares, which hit a three-decade high on Monday on strong earnings, also boosted European markets. The market also got a boost from a possible ceasefire between Israel and Hamas, which the US is currently negotiating.

TTF natural gas prices rose 2.96% to €46.4/MWh on Monday morning, after Yemeni Houthi rebels took control of an Israeli cargo ship in the Red Sea. Shares of pharmaceutical giant Bayer also fell to multi-year lows after trials of a blood-thinning drug were halted.

European markets boosted by luxury goods stocks

On Monday morning, the CAC 40 index was up 0.22% at €7,249.4, with the Stoxx 600 also up slightly 0.04% at €455.9. However, the FTSE 100 index was down 0.14% at £7,493.42.

LVMH was among the top gainers on Monday morning, up 1.14% to €719.8, after Berluti announced he will design the French uniforms for the Olympic opening ceremony.

TotalEnergies also reported a 1.07% rise to €62.5, after the company recently completed critical flow testing on its latest Orange Basin discovery in Namibia.

The top loser was Renault, which fell 0.76% to €35.3, after the company recently announced a new electric city car made in Slovenia that was not very popular with investors.

Schneider Electric also fell 0.65% to €164.98. The company recently announced a low carbon steel partnership with ArcelorMittal.

what to look forward to in the coming week

Later today, investors await a speech from Bank of England (BoE) Governor Andrew Bailey on Monday evening. Hope this sheds more light on BoE current monetary tightening policy And provide some insight into whether the Governor still believes “policy should do most of the work” to get inflation back to the 2% target.

At the end of the week, the minutes of the Federal Open Market Committee (FOMC) will be released on Wednesday, which will provide a complete picture of the agenda points discussed during the US Federal Reserve meeting in early November.

With investors already hopeful that the Fed may be ready to ease its current policy, the FOMC minutes are highly anticipated.

Euro zone consumer confidence flash figures for November are also due on Wednesday and are expected to rise to -17.6 from -17.9 in October, as interest rates feelings improve,

A number of manufacturing and services purchasing managers’ indices (PMIs) are also due this week from the UK, France, Germany and other countries, including the euro zone.


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