European stocks began the new trading week on a positive note, with the pan-European Stoxx 600 index inching up by 0.3% at the start of Monday’s session. Investors are on the lookout for signs that the previous week’s market turmoil has subsided. Leading the gains were the financial services and insurance sectors, both advancing by approximately 0.6%.
This upward movement in European stocks mirrored a similar trend in Asia-Pacific markets, which also managed to rebound after a period of volatility. Global stock markets experienced significant fluctuations last week, with sharp sell-offs followed by an equally strong recovery. Despite the recent turbulence, the Stoxx 600 index closed the week with a modest gain of 0.27%, recovering from a 2.9% drop the previous week, as reported by LSEG data.
Meanwhile, U.S. stock futures showed little movement on Monday as traders awaited crucial inflation reports. The week’s key events include the core producer price index release on Tuesday, followed by July’s consumer price index on Wednesday. After a volatile week, major Wall Street averages closed higher on Friday, bouncing back from earlier declines. This week’s focus for investors is on gaining a clearer understanding of the U.S. economy’s health, particularly after concerns over a potential job market slowdown unsettled traders and caused market disruptions.
Additionally, attention will be on the U.K., where inflation data is expected on Wednesday. This will be the first significant economic indicator released since the Bank of England’s recent decision to reduce interest rates by 25 basis points.
Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
