Divided European stocks; German Ifo report on the horizon
Stock Market News
Date:- 25-09-2023
On Monday, European stock markets were neutral as investors digested a string of interest rate decisions from central banks and awaited the release of Germany's highly-anticipated Ifo Institute assessment of business conditions.
The DAX in Germany was down 0.1% at 03:40 ET (07:40 GMT), while the FTSE 100 in the United Kingdom was down 0.1% and the CAC 40 in France was up 0.1%.
Processing the Actions of the Central Bank
As the third and final quarter begins, investors are still processing the flood of central bank decisions made the previous week, many of which produced mixed effects.
little the Federal Reserve in the United States took a "hawkish" attitude, signaling that interest rates would remain high for a little longer, their British and Swiss counterparts shocked investors by suspending their rate-hiking cycles.
After raising its main interest rate to a record high 4% the previous week, the European Central Bank took a dovish tone the next week, signaling a pause in its rate-hiking cycle in October.
Investors will be listening to ECB President Christine Lagarde's speech later in the afternoon for fresh signs that the central bank of the eurozone is finished hiking.
On Monday, her colleague Francois Villeroy de Galhau warned the European Central Bank (ECB) against raising interest rates too quickly in order to prevent a "hard landing" of the economy.
Incoming Ifo business survey in Germany
Investors will be paying close attention to Germany's Ifo Institute assessment of business conditions for September later in the day due to the country's status as the eurozone's largest economy.
Investors will also be keeping an eye out for the bloc's preliminary September consumer price data, which is scheduled for release at the week's conclusion.
The UK division of AIG will be acquired by Aviva.
After agreeing to purchase AIG's (NYSE:AIG) UK protection division for £460 million ($1.2245), shares of Aviva (LON:AV) declined by 0.4%.
Rebounding off a bad week, crude prices
On Monday, oil prices inched higher, recovering from their first weekly loss in four as traders switched their attention back to the possibility of tighter supply going forward.
Last week, both contracts dropped due to worries that the Federal Reserve's hawkish approach would have a negative impact on economic activity and, by extension, oil consumption in the world's top consumer.
In spite of Saudi Arabia and Russia extending additional supply cutbacks until the end of the year, prices remain at their highest levels since November of last year on forecasts of a significant oil supply deficit in the fourth quarter.
U.S. oil futures rose 0.7% to $90.62 per barrel by 03:40 ET, while the Brent price rose 0.6% to $92.55 per barrel.
Additionally, EUR/USD traded 0.1% lower at 1.0638, and gold futures dropped 0.1% to $1,943.55/oz.
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