European stocks saw a rebound as China’s markets remained closed for the Golden Week holidays, following an impressive surge. The Shanghai Stock Exchange wrapped up its best week since 2008, with an 8.06% gain on Monday. Despite the closure of China’s markets, other major regions stepped in to maintain momentum. Both Japanese and European markets showed modest gains, helping to keep the market mood buoyant.
In Europe, the STOXX Europe 600 experienced a 0.20% rise, and the UK’s FTSE 100 climbed by 0.30% during early Monday trading. Investors turned their attention to the preliminary September inflation data for the Eurozone, which reported a figure of 1.8%, aligning with expectations. This figure came below the European Central Bank’s target of 2%, a fact that could bolster the likelihood of another rate cut from the ECB. Germany’s Covestro made headlines by leading the STOXX with a notable 3.7% rise, thanks to the announcement from Abu Dhabi’s state oil firm ADNOC regarding a €15.9 billion ($17.7 billion) takeover bid for the chemicals group.
In the United States, Friday saw a mixed day of trading for the major indexes. The Dow Jones Industrial Average edged up 0.04%, setting yet another new record, while the S&P 500 posted a 0.42% gain, and the tech-focused Nasdaq advanced 0.38%. Investors were left on edge following Federal Reserve Chair Jerome Powell’s comments, which hinted at continued interest rate cuts but provided little certainty regarding the timeline. Powell’s words initially spooked the markets, resulting in a brief drop across all three major indexes. However, the markets regained strength later in the day, erasing the earlier losses and pushing into positive territory.
Elsewhere, Japan’s Nikkei 225 recorded a 1.93% increase, showing solid performance as it picked up where China’s markets left off. The cryptocurrency market also saw movement, with Bitcoin rising 1.15% to trade at $63,939.20. Despite the mixed signals from the Federal Reserve, markets across regions seemed to adjust positively, finding stability amid a range of economic data and investor sentiment.
Even with China taking a break for the Golden Week, global markets demonstrated resilience, with Europe and Japan stepping in to lead gains. Investors are closely watching inflation data and central bank decisions, all of which continue to shape the ongoing market landscape.
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