European stocks saw gains on Monday, continuing the momentum from last week’s rally as investors looked forward to new insights on the US economy from the upcoming Jackson Hole economic symposium. The Stoxx Europe 600 Index rose by 0.6% by the market’s close, marking the strongest weekly performance since May. Among the sectors, basic resources and retail led the charge, while healthcare stocks lagged behind.
Several individual stocks made notable moves. Plus500 Ltd. saw an increase in its stock price after reporting a strong performance in the first half of the year, with expectations that its annual results will surpass forecasts. Ericsson AB, the Swedish telecoms-equipment manufacturer, also saw a slight rise in its stock value following a $1 billion deal to sell its US call-routing business, Iconectiv, to Koch Inc.’s private investment arm.
The recent recovery of Europe’s benchmark index comes after a global selloff earlier this month. Improved technical indicators suggest a renewed interest from investors in taking on more risk. This week, the market’s focus is on the central bankers’ meeting at Jackson Hole, particularly with Fed Chair Jerome Powell scheduled to speak on Friday.
Joachim Klement, a strategist at Panmure Liberum, noted that while markets are still cautious about the US economy, investor sentiment is beginning to improve. The upcoming European business activity data will provide further clarity, especially regarding the economic slowdowns in Germany and France, which may introduce new macroeconomic concerns for the markets.
European stocks are demonstrating resilience as investors anticipate key economic insights from Jackson Hole, contributing to an overall positive market sentiment.
JPMorgan European Discovery Trust plc (LON:JEDT) is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
