Rightmove Shares surged by 27% and the European market has ended their first trading session of the month of September with no major changes; as from investors’ point of view, the market gets influenced by some factors. This situation might be alarming for the future of the economic condition, interest rates, and even the geopolitical developments. The investors are now considering this situation as both negative and positive for the future of Europe’s economy.
STOXX 600 of the European Union has shown a downward result where it fell by 0.04 percent, as the sectors showed mixed results and with different indices. On the other hand, the telecom sector has gained 0.78 percent, but it is seen that there is a drop of 0.77 percent in the retail sector.
The UK-based estate listing company Right Move has noticed that their shares surged by around 27 percent, which is influenced by its Australian competitor, REA Group, which is considering a takeover bid. The increase in share prices has heightened investors’ expectations for the best deals. As of the current market`s mindset, this move of acquisition played by the REA group has indicated it as a strategic game play to expand their presence in the entire United Kingdom`s real estate market.
The investors have reacted positively to the news of the acquisition because there is an involvement of big players like REA groups. The increase in Right Move`s stock prices is an indication that the market might experience a financial gain in the near future. Despite this news, we must stay cautious as this report is still under consideration and not finalised yet. The market is now stagnant, and participants in it are closely monitoring the situation for the further development process.
As on Monday`s report stated, the final manufacturing PMI data based on numerous European countries has been released, which delivers the entire economic condition of the region. The Euro Zone`s manufacturing unit is a prime indicator of the economic condition, which remained tightening, which shows a reading of 45.8 in the month of August. Which indicated that the sector’s growth is impacted negatively were it declining rather than expanding. This type of tightening situation is created due to the unstable performance given by the two largest economic European nations, Germany and France. This report, which is published by the Hamburg Commercial Bank and S&P Global, is a glimpse of what is going on in the European market and what the challenges are for the European manufacturing unit.
As per the reports, the United Kingdom`s manufacturing unit has witnessed a strong recovery during the month of August, while the Purchasing Manager Index (PMI) gained 52.5 points, which is a record 26-month high. Whether PMI above 50 points shows that there is an expansion in the sector, which indicates that the sector`s manufacturing activity is growing at a good rate rather than declining. So, this is a positive result that shows that the manufacturing sector of the UK is recovering, as stated by the report that was published by S&P Global. The rise in the PMI index might lead to an increase in demand, better production, and also be able to improve confidence based on the business sector.
During last Friday’s session, the regional markets finished on a higher note, which is also the last trading day session of the August month, while the investors are curious about the upcoming actions from the United States Federal Reserve. This is a positive situation, and there is a high chance that the Federal Reserve might decline their rate of interest during the month of September. It is proven that whenever the interest rate goes down, it stimulates the economic growth of that particular region by making borrowings more affordable and encouraging the investments, and as per the investor’s point, the rate cuts give a supportive measure to the economy of the country, which also contributes to the overall wellbeing of the market.
Last week`s data has shown that the Fed is supporting the price rise, while the personal consumption expenditure price index has surged by 0.2 percent in the month of July, which is compared to the last month`s data, and there is an increase of 2.5 percent each and every year. This data supports the anticipation, which was made by the economist of the Dow Jones, that if the food and energy costs are also taken, then the index shows a rise of 0.2 percent compared to last month’s data. In the month of September there is a Fed’s meeting, where we have to keep an eye on how this inflation data affects the Fed’s decision of rate cuts.
China`s PMI has shown a six-month low with 49.1 points in the month of August, which is also lower than the contraction created in the month of July with 49.4 points. The Asia and Pacific markets witnessed an overnight fall due to the declining figures of China’s business activity, while there is news that on the occasion of Labour Day, the United States markets were closed on Monday.
