The Stoxx 600 Index gained 0.5% by 08:02 a.m. in London, led higher by cyclical sectors such as basic resources and banks. Equities got a boost after Yellen said she’s increasingly confident that the US will be able to contain inflation without major damage to the job market.
The region’s stocks have seen a testing start to the month as worries over higher interest rates have dented risk appetite, and luxury firms have come under pressure from worries over a slowdown in China. The gauge is down slightly in September, though remains 7.5% higher on the year. Investors have their eyes on upcoming US inflation data as well as the European Central Bank’s interest rate decision, due on Thursday, and whether this time will be the final hike as part of policymakers’ battle to tame inflation. Last week’s report showing that the euro-area economy barely grew in the second quarter has raised worries over the risk of stagflation setting in.
“Although we still see some upside for stocks in 4Q, as inflation continues to ease and yields fall, this outperformance will fade soon as the UK and the Eurozone deal with the recession and markets assess the poor earnings outlook,” Liberum’s Cruz said.Italian banks after Corriere della Sera reported that the government is considering changes to the controversial tax on banks’ windfall profits it unveiled last month.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »