Oct 7 2024: European stock markets edged higher on Monday, following a positive handover from Asia after last week’s strong U.S. jobs report. Investors are also gearing up for the start of the corporate earnings season.
As of 03:05 ET (07:05 GMT), Germany’s DAX index rose by 0.2%, France’s CAC 40 was up 0.3%, and the U.K.’s FTSE 100 increased by 0.3%.
Payroll Data Lifts European Markets European stocks began the week on an upbeat note, benefiting from gains in Asia, where Japan’s Nikkei surged 2%, spurred by the stronger-than-expected U.S. jobs report. The U.S. economy added 254,000 jobs in September, surpassing the anticipated 150,000.
This data has eased concerns about a potential U.S. recession, shifting the outlook towards a “soft landing,” where the economic slowdown may avoid a full-blown recession.
Eurozone Retail Sales in Focus While U.S. job data boosted optimism, Europe’s economic news was less encouraging. German factory orders dropped 5.8% in August, a sharp decline from the 3.9% gain in July. Additionally, the Ifo survey indicated that sentiment in Germany’s retail sector worsened in September, with retailers expecting a tougher period ahead.
The key focus on Monday will be the release of Eurozone retail sales data, offering insight into consumer resilience during challenging economic times. August retail sales are forecasted to rise by 0.2%, a slight improvement over July’s 0.1% growth.
Several ECB officials, including Chief Economist Philip Lane, are scheduled to speak later, likely continuing the message of potential further easing, echoing President Christine Lagarde’s recent statements.
Earnings Season Approaches In the corporate world, attention is shifting to the upcoming third-quarter earnings season, with U.S. banking giants JPMorgan Chase, Wells Fargo, and BlackRock set to report results on Friday. European banks will follow shortly after.
Shell’s stock gained 0.4%, despite the company announcing a significant drop in refining margins and weaker oil product trading earnings in the third quarter, compared to the previous quarter.
Oil Prices Ease After Last Week’s Surge Crude oil prices dipped slightly on Monday, giving back some of last week’s substantial gains. At 03:05 ET, Brent crude fell 0.2% to $77.86 per barrel, while U.S. West Texas Intermediate (WTI) slipped 0.2% to $74.25 per barrel.
Oil prices surged last week amid growing concerns about a broader Middle Eastern conflict. This came after Israel vowed to retaliate against Iran following a missile strike, and tensions remain high as Israelis commemorate the first anniversary of the Hamas attack, which continues to fuel regional unrest.
