Breaking News
Investing Pro 0
💎 Access the Market Tools Trusted by Thousands of Investors Get Started

European Stocks Higher; Sentiment Remains Weak

Published Sep 27, 2022 09:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
EUR/USD
-0.02%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.08%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XAU/USD
-0.22%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FCHI
+0.37%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DE40
+0.41%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-0.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Peter Nurse

Investing.com - European stock markets edged higher Tuesday, rebounding after a hesitant start to the week but investors remain concerned about rising interest rates and a deteriorating economic outlook.

By 03:45 ET (07:45 GMT), the DAX in Germany traded 1.3% higher, the CAC 40 in France rose 1.3%, and U.K.’s FTSE 100 climbed 0.7%.

European equities gained Tuesday, for the first time in four sessions, but sentiment remained weak with investors concerned that aggressive monetary tightening to combat soaring inflation will push not only Europe but much of the world, into recession.

The European Central Bank is expected to raise interest rates further over its "next several meetings", ECB President Christine Lagarde said on Monday at a hearing of the European Parliament's Committee on Economic and Monetary Affairs, with these hikes designed to dampen demand.

Goldman Sachs downgraded equities to underweight in its global allocation over the next three months, saying rising real yields and the prospect of a recession suggest the rout has further to run.

“Current levels of equity valuations may not fully reflect related risks and might have to decline further to reach a market trough,” analysts at the influential U.S. investment bank said, in a note.

Investors will also be keeping an eye on developments in Italy after Giorgia Meloni’s right-wing coalition won Sunday’s election. The country’s first female leader faces a darkening economic outlook, high debt levels with rising bond yields, and energy price hikes in the wake of Russia’s invasion of Ukraine.

Additionally, the Bank of England will be in focus after Governor Andrew Bailey attempted Monday to boost the beleaguered pound by stating that the bank will raise rates as much as necessary at its next meeting.

In corporate news, SSP Group (LON:SSPG) stock rose 5.2% after the owner of the Upper Crust chain of fast food restaurants said it expects full-year core earnings to be slightly ahead of its prior guidance, as passenger numbers recover to pre-pandemic levels.

Nexi (BIT:NEXII) stock climbed 7.8% after the payments group said it estimated an excess cash generation of around 2.8 billion euros ($2.70 billion) in 2023-2025 which can be used to pursue M&A opportunities or to return capital to shareholders via buyback and dividends.

Oil prices gained Tuesday, rebounding from the lowest levels since January as markets weighed the potential for a reduction in supply even as recessionary concerns, tighter monetary policy, and a rally in the dollar dimmed the outlook for demand.

Major crude producers BP and Chevron said that they had cut production at some offshore oil platforms in the Gulf of Mexico in anticipation of Hurricane Ian.

Additionally, Iraq Oil Minister Ihsan Abdul Jabbar said on Monday the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, were monitoring the oil price situation, raising the possibility of the group cutting output at next week’s meeting.

By 03:45 ET, U.S. crude futures traded 1.9% higher at $78.19 a barrel, while the Brent contract rose 1.9% to $84.41. Both contracts sank by about $2 a barrel on Monday, adding on to Friday’s 5% slump.

Additionally, gold futures rose 0.7% to $1,645.15/oz, while EUR/USD traded 0.5% higher at 0.9655.

European Stocks Higher; Sentiment Remains Weak
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email