Stock Market

European stock market rises at the beginning of the week

European stock indices traded higher on Monday, despite weak data on the growth of the UK economy.

By 3:50 AM ET (0750 GMT), the DAX in Germany was up 1.4%, the CAC 40 in France was up 0.9% and the UK |FTSE 100 was up 1%.

The European market finished last week with good gains as September started on a positive note, and that tone continued on Monday, even after disappointing UK economic growth data illustrated the economic difficulties the region is currently experiencing.

UK GDP in July grew by 0.2% compared to June, which is below the expected growth of 0.3%, and in the 3 months to July, the country’s GDP has not changed compared to the previous three-month quarter.

Last month, the Bank of England predicted that the UK would plunge into recession at the end of 2022 and not come out of it until early 2024.

In corporate news, Electrolux (ST:ELUXa) shares fell 3.3% after Europe’s largest home appliance maker announced plans to launch a cost-cutting program in response to weaker-than-expected demand and weaker revenues for background of high inflation.

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Shares of Koninklijke Philips NV (AS:PHG) surged 1.5% despite reports in the Dutch press that VEB’s shareholder association is threatening to sue the conglomerate’s actions over a worldwide recall of its breathing apparatus.

Shares of Swiss Re (SIX:SRENH) rose 1% after the reinsurer said that global geopolitical tensions, macroeconomic events and climate change have increased demand for risk protection and will lead to higher insurance premiums.

Oil prices stabilized on Monday after last Friday’s lowest weekly close in over 7 months as traders weigh in on China’s sharp monetary tightening and restrictions due to COVID-19.

Trade data released last week showed that China’s oil imports slowed significantly in August due to COVID-19-related economic disruptions, raising fears of a significant reduction in demand during the year from the world’s largest importer.

By 3:50 AM ET (0750 GMT), WTI futures traded 0.1% lower at $86.75 a barrel, while Brent rose 0.1% to $92 .93.

In addition, gold futures rose 0.4% to $1,734.80 an ounce, while EUR/USD traded 1.4% higher at 1.0181.

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