European stocks helped by a significant rise in oil prices. In addition, investors expect that central banks will continue accommodative monetary policy.
Certain influence on the dynamics of trade have also had statistical data for the euro area and Britain. Markit Economics reported that the eurozone economy continued to expand in August, but the pace of growth slowed to a 19-month low, which was mainly due to the weaker expansion in Germany. According to the data, the index of business activity in the services sector fell to 52.8 points from 52.9 points in July. Previously it was reported that the index improved to 53.1 points. Analysts predicted that the figure will be 53.1 points. The final composite PMI index fell in August to 52.9 points from 53.2 points in July.
Meanwhile, the results of a survey presented by research group Sentix, showed that investor sentiment in the euro area improved significantly in September, registering the second consecutive monthly increase, and reached its highest level in three months. Indicator of investor confidence rose in September to 5.6 points compared with 4.2 points in August. Analysts had expected the index to rise to 5.1 points. The last reading was the highest since June (when the index was 9.9 points). The sub-index of current conditions jumped to 4.5 points from 3.8 points in July, while the expectations index rose to 6.8 points from 4.8 points.
In addition, Eurostat Statistical Office stated that retail sales in the euro zone rose more than expected in July, showing the biggest monthly gain this year. According to the data, seasonally adjusted retail sales increased by 1.1% compared to June, and rose 2.9% on an annualized basis. Analysts had forecast an increase of 0.6% and 1.9% respectively.
With regard to data on the UK, in the Markit Economics reported that activity in the services sector has increased significantly by the end of August, which is another evidence of economic recovery after the shock caused by the decision to leave the EU. According to the report, the purchasing managers index (PMI) for the services sector rose in August to 52.9 points versus 47.4 points in July (at least seven years), recording the biggest monthly increase in 20-year history of the index. Analysts had expected the index to improve to 50.0 points.
The composite index Stoxx Europe 600 grew by 0.2 percent. Recall, on Friday, the index jumped to its highest level since April after US data signaled a weaker employment growth, reducing the likelihood of a Fed hike in the near future. This week, investors will be focused on the European Central Bank meeting. It is expected that the ECB will leave its monetary policy unchanged, but may hint at expanding bond purchase program.
ArcelorMittal’s shares rose 3.4 percent since leaders G20 mentioned the overcapacity in steel production.
Hugo Boss AG shares fell 1.4 percent after UBS Group AG analysts downgraded the company’s stock rating to “sell” from “neutral,” citing the risk of decline in profits in 2017.
Capitalization of SFR Group SA jumped 6.5 percent amid reports that rival Altice NV agreed to buy the remaining 22 percent stake in the company for 2.4 billion euros. Meanwhile, the cost of Altice NV rose by 1.5 per cent.
At the moment:
FTSE 100 6873.58 -21.02 -0.30%
DAX +26.02 10709.84 + 0.24%
CAC 40 4558.23 +16.06 + 0.35%
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