European stocks set for 7th week of gains

European stocks look set to post their seventh consecutive week of gains, despite a drop on Friday (2) ahead of US employment data, amid some easing on concerns about tightening global monetary policy.

The pan-European STOXX 600 index fell 0.3% after two days of strong gains. Energy and financials stocks were among the biggest losers in the broader index, pushing it further away from the highest since June levels hit on Thursday.

“There appears to be some profit taking after sessions characterized mainly by risk appetite. Optimism about the economic reopening in China helped drive gains,” said Victoria Scholar, head of investment at Interactive Investor.

Chinese officials this week softened their stance on the tight Covid restrictions that have hit global growth, amid protests in the country.

The STOXX 600 is on track to rise about 0.5% for the week, set to advance for the seventh straight week, its longest streak since April 2021.

“However, there is a little more caution today on the news of a potential cap for Russian oil and amid jitters over the US jobs report,” Scholar said.

Economists expect around 200,000 jobs to have been created in the United States in October, and any drop will be seen as proof that the Fed’s aggressive tightening is working, strengthening the case for a more moderate central bank stance.

The FTSEurofirst 300 index was down 0.09% to 1,752 points.

In LONDON, the Financial Times index fell 0.24% to 7,540 points.

In FRANKFURT, the DAX index was up 0.32% to 14,537 points.

In PARIS, the CAC-40 index lost 0.08%, at 6,748 points.

In MILAN, the Ftse/Mib index lost 0.11% to 24,658 points.

In MADRID, the Ibex-35 index registered a drop of 0.17%, to 8,394 points.

In LISBON, the PSI20 index lost 0.08% to 5,922 points.

Source: CNN Brasil

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