Sept 16 (Askume) – European stocks were weak at the start of a data-packed week in which the main highlight will be the start of the Federal Reserve’s long-awaited monetary easing cycle, with many investors leaning towards a deeper-than-expected rate cut.
The pan-European STOXX 600 index (.STOXX) rose 0.1%, tracking gains with most major European markets, but Germany (.GDAXI) fell 0.2%.
All eyes will be on the Federal Reserve’s interest rate decision on Wednesday, with the money market predicting a 60% chance of a 50 basis point interest rate cut in 2024, giving a total rate cut of 120 basis points.
“Why are they doing this?” Kathleen Brooks, research director — And the dot plot and what it tells us about Fed members’ current expectations for final rates.
Among sectors, healthcare (.SXDP) and utilities (.SX6P) were the biggest gainers, up 0.5% and 0.1%, respectively, while mining stocks (.SXPP) were the biggest losers, falling 0.7%, even after they were up nearly 4% for the week, as commodity prices rose.
Data on the euro zone’s overall trade balance for July will be released at 0900 GMT and will help investors assess the region’s economic health.
Comments from ECB Vice President Luis de Guindos and chief economist Philip Lane later in the day will also be closely watched by investors for any hints of a rate hike by the central bank.
Among individual stock movers, France’s Rexel ( RXL.PA ) rose 9.3% after the Paris-listed group declined .A roughly $9.4 billion takeover bid from QXO (QXO.O), led by billionaire Brad Jacobs .
Shares of French drugmaker Ipsen (IPN.PA) rose 5.4% after Royal Bank of Canada upgraded its rating to “outperform” from “sector perform”.
UniCredit (CRDI.MI) CEO Andrea Orcel said that with Commerzbank (CBKG.DE)Shares rose 1.6% after the merger , it will enhance value for all stakeholders and create a stronger bank.
On the other hand, Nestle (NESN.S) shares fell 0.7% after Morgan Stanley downgraded Nestle’s (NESN.S) stock rating to “underweight” and lowered its target price.
British insurer Phoenix Group (PHNX.L) halted the sale of its SunLife business due to market uncertainty , sending its shares down 2.8%.
