Stock traders and investors look poised for a bountiful week of earnings as they await a major interest rate decision from the Fed.
Monday morning signaled some hopeful times ahead for the European stocks market, which opened on a rising note. However, it might be safe to say that the driving force behind the sudden rise in the value of European stocks, is a recent report that claims that the Federal Reserve could throttle down on its pace of interest rate hikes. This explains why traders and investors are poised for a bountiful week of earnings as they await a major interest rate decision from the Fed.
Stoxx 600 Gains 1.3%
In the early hours of the day, the continent-wide Stoxx 600 index (.STOXX) was up 1.3%, according to MarketWatch data. However, all sectors and major stock exchanges opened higher, with chemicals leading the gains after seeing a rise of 1.6%.
Italian stocks (FTMIB) also rose 1.4% after the newly-sworn Prime Minister Giorgia Meloni held a chit-chat with French President Emmanuel Macron on Sunday. Meloni became Italy’s first-ever female Prime minister on Saturday.
Some single stocks are also on the rise. Philips (PHG.AS), for instance, added 1%. The Dutch medical equipment maker saw the value of its shares increase after revealing plans to cut down nearly 4,000 jobs in an attempt to streamline its business.
Impact of UK Politics on European Stocks
Meanwhile, despite that most of Wall Street’s main indexes are rallying on hopes that the Fed will likely decide on a smaller interest rate hike in December, UK’s blue-chip FTSE 100 (FTSE), appears to be unexcited. The stock is underperforming and is currently down 0.38%.
Interestingly, the below-par performance of the FTSE 100 appears to be largely linked to the ongoing UK politics.
As of publication, the dust is yet to settle on the matter of finding a replacement for Liz Truss. She recently resigned from her position as Britain’s prime minister. However, fresh reports now have it that Boris Johnson has stepped down from the race, making Rishi Sunak an instant favorite. Following the news of Boris Johnson’s withdrawal, the pound rose.
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