European markets rally as investors await ECB interest rate decision

European markets began the month on a positive note on Monday, continuing last week’s rally as investors anticipate the European Central Bank’s upcoming interest rate decision later this week.

In the opening deals, the pan-European Stoxx 600 index rose by 0.9%, with all sectors and major bourses showing gains. Technology stocks led the upward trend with a 1.6% increase, while the travel and leisure sector also performed well, climbing by 1.5%.

The ECB is expected to cut interest rates on Thursday, marking the first reduction since 2019. This anticipated move is significant as it would precede action from the U.S. Federal Reserve, which usually leads in setting monetary policy.

Investors will be closely monitoring whether the slightly higher-than-expected euro zone inflation data released on Friday will influence the ECB’s decision-making.

In Turkey, inflation surged to 75.5% annually in May, according to the Turkish Statistical Institute. The data revealed that the most significant consumer price increases over the year were in education, housing, and restaurant prices.

Euro zone manufacturing activity reached a 14-month high in May, according to the latest HCOB purchasing managers index released on Monday. In Spain, activity grew at its fastest pace in over two years. Meanwhile, France and Germany showed signs of recovery, though their activity remained below the 50-point growth threshold.

There are no major corporate earnings expected during Monday’s session. However, investors will be watching oil prices closely. These prices rose after OPEC+ decided on Sunday to extend most of its oil output cuts into 2025.

Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Fidelity European Trust

More articles like this

Fidelity European Trust

European stocks begin the week with gains

European stocks rose on Monday, with the pan-European Stoxx 600 index up 1.2% by mid-morning in London. All sectors were in positive territory, led by construction and materials stocks, which gained over 2%. This upturn followed

Fidelity European Trust

Election week boosts European markets

European markets opened the week on a positive note, climbing on Monday after a slow start. Investors are keeping a close watch on the U.S. presidential election scheduled for Tuesday, with significant implications for markets across

Fidelity European Trust

European stocks hold steady amid improved market sentiment

European stocks remained largely unchanged as easing tensions in the Middle East brought some optimism, though declining oil prices exerted pressure on the energy sector. By mid-morning in London, the Stoxx Europe 600 Index had flattened

Fidelity European Trust

European stock market and the economic outlook

The European stock market has shown resilience despite global economic challenges in recent years. It continues to be a key focus for investors due to the region’s established financial infrastructure and the strength of its major

Fidelity European Trust

Eurozone retail sales show modest growth in August

Retail sales in the eurozone experienced a modest increase in August, showing a recovery after a stagnant performance in July. According to recent data from Eurostat, retail trade volumes in the euro area grew by 0.2%

Fidelity European Trust

European stocks climb amid global market struggles

European stocks saw an increase on Monday, defying the negative trends observed in both Wall Street and Asia-Pacific markets. By mid-morning in London, the pan-European Stoxx 600 index had risen by 0.57%, with most sectors and

Fidelity European Trust

A growing number of European businesses embrace AI

Over the past year, the adoption of AI by European businesses has grown by 32%, and this trend, if sustained, could add €600 billion in gross value added (GVA) to the European economy by 2030. This

Fidelity European Trust

European stocks show signs of recovery

European stocks experienced a modest increase by midday Tuesday in London, attempting to recover from Monday’s market downturn. At 11:54 a.m. London time, the pan-European Stoxx 600 was up 0.17%. It was a day of volatility,