European Stocks Rise; UK Plays Better Before Fiscal Report

Oct 17, 2022
VOT Research Desk

Market Analytics and Considerations

By 03:40 ET (07:40 GMT), the German DAX was up 1%, the French CAC 40 was up 1%, and the British FTSE 100 was up 3%.

Following the announcement that the new Chancellor will bring forward the announcement of his fiscal plans to shore up market confidence after weeks of turmoil, European stock markets edged higher on Monday, with the United Kingdom outperforming.

By 03:40 ET (07:40 GMT), the German DAX was up 1%, the French CAC 40 was up 1%, and the British FTSE 100 was up 3%.

After the initial economic plan presented by Prime Minister Liz Truss and former Chancellor Kwasi Kwarteng roiled financial markets, new British finance minister Jeremy Hunt will announce tax and spending measures later on Monday, two weeks earlier than originally planned.

With yields on British government bonds sharply lower even without the support of the Bank of England’s emergency bond-buying program, which ended on Friday, reports this weekend that the U.K. government is preparing to do a major U-turn on planned tax cuts have boosted sentiment.

However, investors continue to be concerned about the deteriorating economic outlook and the persistence of global monetary policy tightening.

Expectations for additional Federal Reserve rate hikes this year were largely solidified last week by a reading of inflation in the United States that was higher than anticipated, and China’s GDP data for the third quarter, which is due on Tuesday, is anticipated to show the slowest annual rate of growth in nearly 50 years.

Back in Europe, there aren’t many economic data to look at. However, Italian consumer prices are expected to continue rising in September, rising 8.9% year-over-year.

The European Central Bank will feel even more pressure to keep raising interest rates as a result of this. Luis de Guindos, a member of the ECB’s board of governors, and Philip Lane, a member of its board of directors, are scheduled to give speeches on Monday at various events.

In business news, ASOS (LON:

After the British online fashion retailer confirmed over the weekend a report that it is in talks with its lenders about changing the terms of its 350 million pound ($394 million) borrowing facility, ASOS’s stock fell by more than 11%.

Six: Credit Suisse The Swiss lender agreed to pay $495 million to settle claims related to the bank’s residential mortgage-backed security business prior to 2008, resulting in a 0.9% increase in the stock price of CSGN. This is the latest payout related to past mistakes that have damaged the Swiss bank’s reputation.

Oil prices increased on Monday in anticipation of increased demand from China, the world’s largest crude importer, and minor selling of the dollar.

Sunday, President Xi Jinping made the statement that Beijing will increase spending and stimulus to support economic growth. This could boost crude imports, which have been affected by the slowdown in activity brought on by COVID disruptions.

U.S. crude futures were up 1% at $85.58 a barrel by 03:45 ET, while the Brent contract was up 1% at $92.67. Additionally, EUR/USD traded 0.4% higher at 0.9754, while gold futures gained 0.7% to $1,659.70/oz.

Dax

Technical Indicators Oct 17, 2022

Moving Averages

FTSE

6,889.30

Oct 17, 2022

DAILY Pivot PointS

Technical GUAGE Oct 17,

MOVING AVERAGES  Oct 17,

CAC

PIVOTS Oct 17, 2022

TECHNICAL INDICATORS Oct 17,

Moving AveragesOct 17, 2022 05:33AM (GMT-4:00)