European stock markets shook off recent negativity to start the week on a positive note, buoyed by overnight trade in Asia-Pacific.
The Stoxx 600 index hit its highest level since August 9 in morning trade, trading up to 0.8% higher before paring gains to 0.3% by 2:20 p.m. London time.
Technology stocks were up 0.9% and travel gained 1% as sentiment around equities brightened following Friday’s U.S. jobs report. Investors saw signs of a slowdown which could rein in Federal Reserve hawkishness.
Max Kettner, chief multi-asset strategist at HSBC, told CNBC that a key question for equities was whether the Fed will really deliver the five rate cuts in 2024 that are currently priced in by markets.
“I think we don’t have a recession on the cards in the U.S., never had, and also don’t have it for 2024. In fact, when we look at some of the data right now around the manufacturing sector in the U.S., there are signs the sector can pick up a bit further steam,” Kettner said.
The European basic resources sector was 0.7% higher, meanwhile, after China announced a set of stimulus measures and support for its struggling property sector.
Also Monday, German trade data showed a 0.9% month-on-month fall in exports in July, while imports rose by 1.4%. Economists polled by Reuters had forecast a 1.5% month-on-month decline in July exports for Europe’s largest economy, which is slowing in many areas.
Investors will be keeping an eye on a speech by Christine Lagarde, the president of the European Central Bank. Lagarde will be speaking at the Distinguished Speakers Seminar organized by the European Economics & Financial Centre.
