The European stocks have ended their Monday’s session with mixed subjects due to investors’ concern about the escalating tensions in the Middle East region, subsequent to the both Israel and Hezbollah attacks during this weekend.
As the report says, the DAX index of Germany has ended their session with 0.06 percent less; even the FTSE MIB index of Italy has closed down of 0.09 percent; Spain`s index IBEX 35 remains down at 0.03 percent; while on the other side, the CAC 40 index of France has ended their Monday’s session in the opposite direction of the going trend with a rise of 0.23 percent. Monday’s market remained closed due to the national holiday.
The investors are concerned about the large conflict in the Middle East, which might trigger the oil prices. 100 Israeli fighter jets have targeted the sites of Lebanon during this weekend; on the other side, the Iranian government has shown their support to Hezbollah to fire more than 320 rocket missiles into Israel’s territory. The Brent crude has witnessed a rise of 2.80 percent and its value traded at 81.22 U.S. dollars per barrel as of 11:30 AM ET, although the United States west Texas Intermediate crude oil has also seen a sharp rise in prices by 3.21 percent at the traded value of 77.23 U.S. dollars per barrel.
As of the current situation, the market`s complete focus is based on the Iranian government’s decision to attack Israel and how much it will affect Israel without triggering any major conflict-like situation between these two nations. During the CNBC`s conference, mining and commodities strategist Mr. Vivek Dhar at the Commonwealth Bank of Australia stated that if the Iranian army attacks Israel, Iran needs to be prepared for the counterattack of Israel, which might be focused on their primary oil reserves, and this attack could be dangerous for around 3 percent to 4 percent of the total oil supply of the entire globe.
The upward trend of the United States markets is influencing the pan-European STOXX 600 to go up by 1.3 percent this week, which ended its weekday end session with strong gains.
United States Federal Reserve chairman Mr. Jerome Powell has hinted that the bank’s rate of interest might go down in the future, and after this statement, the United States stock futures have shown minimal movement during Monday’s session. Basically, Mr. Powell did not clarify any timings that when the rates will cut off, the Fed Watch instrument of CME Group has indicated that the traders generally look forward to a decline during the 18th September`s Fed meeting. But in regions like Asia and the Pacific, the market has still remained mixed.
In the European region, Germany’s IFO data has indicated that there is a dropout in the overall business sentiment in the month of August this year, which gives a warning that the country’s economy is still not in a good position. During the August month, the IFO Business Climate has declined by 86.6 points, which is lower than last month`s 87.0 points. Additionally, the data that is issued by the institution on X has stated that Germany’s economy is significantly declining and evolving as a crisis-like situation.
It is still yet to be decided whether the European Central Bank will consider cutting their rate of interest in the upcoming month. The decision is based on the euro zone`s inflation data, which is going to be released on Friday and will be considered for further planning.
There is a good chance that the European stocks are likely to give a stronghold during the initial opening phase of Tuesday’s session, which is due to the positive news that the Dow Jones industrial average has climbed to a new record high position, which fuelled up the expectations for the further rate cuts from the U.S. Federal Reserves.
During Monday’s session, the Federal Reserve Bank of San Francisco`s honourable president, Mrs. Mary Daly, indicated that the timing is perfect for the interest rate cuts. She also stated that the current situation is favourable for economic growth, that there is a high chance that the inflation might slow down, and that we might witness significant job growth in the labour market.
Later on this day, the trading might get followed by the reaction that is created by the report of the U.S. consumer confidence as of August. Additionally, the activities might stagnate as the investors await the clear-close view of the PCE inflation report, which is yet to be released on Friday this week. There is a high chance that it could confirm the anticipation made by the investors about the rate cuts on the horizon.
https://www.nasdaq.com/articles/european-shares-set-steady-open
