Jan 29, 2024: European equities commenced the week with a restrained tone, experiencing a pause after reaching two-year highs in the preceding session. The financial sector’s setbacks tempered the overall market sentiment, although robust gains in the energy sector offset some of the losses.
As of 0940 GMT on Monday, the pan-European STOXX 600 index remained flat at 483.86 points. The benchmark index had achieved its highest level in two years on Friday, concluding the week as the most fruitful in three months.
A notable highlight was the 1.3% increase in oil and gas stocks, aligning with earlier surges in crude prices. The uptick followed a drone attack on U.S. forces in Jordan, heightening concerns about potential supply disruptions in the Middle East. Michael Field, European market strategist at Morningstar, noted the significance of supply-side events impacting oil prices during a period marked by fading demand over the past year.
However, countering these gains, financials experienced a 0.5% decline, primarily influenced by a 4.4% fall in Schroders (LON:SDR). Exane BNP Paribas downgraded the UK fund manager’s shares, and Jefferies raised concerns about the company’s prices-earnings premium, contributing to the overall subdued performance in the financial sector. Amidst the mixed landscape, Holcim emerged as a standout performer, adding an extra layer of distinction to the European market dynamics.
