European stocks followed the upward trend in Asian markets, with the STOXX 600 index closing 0.1% higher [3]. The financial sector, including China-exposed firms like HSBC, contributed to the benchmark index’s gains [3]. Additionally, financial and luxury stocks received support on hopes of further stimulus from China [3].
European Central Bank President Christine Lagarde stated that euro zone inflation has entered a new phase, indicating a potential prolonged period of inflation [3]. However, the healthcare sector experienced a decline due to falling shares of Fresenius Medical Care [3]. Siemens Energy also saw a recovery after a sell-off [3].
References: [1] European Stocks Gain on Stimulus Bets; Rates Outlook in … [2] European Shares To Follow Asian Peers Higher On China … [3] European shares inch up on China boost, rate hike fears …
European stocks followed Asian markets higher on Monday.
Investors are encouraged by hopes of more stimulus from China. The pan-European Stoxx 600 index rose 0.9%, with sectors such as autos and construction leading gains.
In Asia, the Nikkei 225 index in Japan closed 2.3% higher, while the Hang Seng index in Hong Kong rose 1.7%.
The gains came after China’s central bank announced on Sunday that it would cut the amount of money that banks must hold in reserve, a move that is expected to free up more money for lending.
The People’s Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) by 0.5 percentage points for all banks, effective September 15.
The move is the latest in a series of easing measures from the PBOC in recent months as it seeks to support the economy amid a slowdown.
Investors are also awaiting the outcome of a meeting of the Federal Reserve’s policy-setting committee on Wednesday. The Fed is widely expected to raise interest rates by 0.25 percentage points, but some analysts are hoping for a more hawkish stance from the central bank.
Overall, the mood in the markets was positive on Monday, with investors looking for reasons to be optimistic. However, the outlook for the global economy remains uncertain, and there are still risks that could weigh on markets in the coming months.
