“European stock markets” opened positive, supporting the banking sector. Travel and leisure were the best performing sectors. And UniCredit’s operating results increased after the chairman of the Fed clearly emphasized that interest rates would be cut later than expected.
On February 5, 2024, Bloomberg News reported that European stock market Opened positively after Jerome Powell, chairman of the Federal Reserve (Fed), emphasized that the market may have to wait beyond March before the central bank cuts interest rates.
The Stoxx 600 index was up 0.2% as of 8:10 am in London, with banking, travel and leisure the best performing sectors. Meanwhile, the mining and energy sectors slowed. This is because investors keep an eye on the operating results of various companies. Another week, UniCredit rises as profits beat analysts’ forecasts. This allows the bank to increase shareholder returns.
Elsewhere, Nordea Bank Abp fell after reporting fourth quarter results and giving new profitability targets, while Delivery Hero shares rose as much as 11% after the German food delivery company offered confidence with 4th quarter guidance publish
last week European stock markets were mostly flat on concerns that interest rate cuts may have to wait until later in the year. Investor expectations for a rate cut in March fell to around 18% from around 48% at the start of last week. Meanwhile, the forecast for an interest rate cut in May 2024 is 61%.
Michael Hewson, Chief Market Analyst, CMC Markets UK He said “The flexibility seen in the equity market Especially in the US It came as a surprise when the central bank signaled that any hope of an early rate cut would have to wait until later in the year.”
Many countries, including Germany and Italy, are expected to report PMI numbers on Monday (February 5, 2024) Investors are keeping an eye on earnings, and UBS will publish results on Tuesday (February 6, 2024) and r giant Orsted ■ major in wind energy The strategic plan will be presented to investors on Wednesday (7 February 2024).
Reference: bloomberg.com
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