Weak trading on European stock markets ahead of the release of minutes from the Fed’s latest meeting* – Finance

Weak trading on European stock markets ahead of the release of minutes from the Fed’s latest meeting* – Finance
Weak trading on European stock markets ahead of the release of minutes from the Fed’s latest meeting* – Finance

The main indexes of Europe’s leading stock exchanges were mostly lower in early trade on Tuesday as investors awaited minutes from the Federal Reserve’s latest meeting for more evidence that central bankers are done raising interest rates, Reuters reported.

The pan-European STOXX 600 index fell 0.3 points, or 0.07%, to 455.96. The German DAX index did not follow the negative trend and advanced by 31.97 points, or 0.2%, to 15,933.3 points. London’s leading FTSE 100 index fell 40.49 points, or 0.54%, to 7,455.87. France’s gauge CAC 40 fell 14.02 points, or 0.19%, to 7,232.91.

The minutes of the Fed’s latest meeting, in which the US central bank left interest rates unchanged, are due to be released later today.

“The theme that dominates the market is that the Fed’s battle with inflation has been won, and that despite comments from[the Federal Reserve Chairman]Powell and his colleagues hinting that another hike is possible, the market really doesn’t believe that position said Stuart Cole, chief macro economist at Equiti Capital.

Meanwhile, officials at the European Central Bank (ECB) have actively sought to counter rising bets on a rate cut amid data signaling a prolonged decline in inflation and a likely recession.

Bank of France Governor and ECB Governing Council member François Villerois de Gallo said interest rates were likely to remain unchanged for the next few quarters. A day earlier, the Governor of the Spanish Central Bank, Pablo Hernández de Cos, commented that it was “premature” to talk about interest rate cuts.

Shares in Swiss hearing aid maker Sonova rose 7.32% to top the STOXX 600 after the company’s annual core profit warning was not as negative as expected.

Shares in Rheinmetall rose 4.7 percent as the German arms company said it expects sales revenue of 13-14 billion euros in 2026 and operating margins of more than 15 percent.

Shares in Monte dei Paschi di Siena fell 8.4 percent after Italy sold a 25 percent stake in the bank.

Shares in Teamviewer fell 10.46% after Deutsche Bank, on behalf of TigerLuxOne, placed 13 million shares in the German software company at a discount of about 8% to Monday’s close.

LVMH shares fell 1.38% after UBS downgraded the French luxury goods giant. A rating downgrade by Deutsche Bank led to a 3.46% decrease in Banco BPM shares.

Growth on Wall Street

The main US stock indexes registered gains on Monday, supported by the strong performance of the technology giants, led by Microsoft and Nvidia, writes CNBC.

The Dow Jones Industrial Average rose 203.76 points, or 0.58%, to 35,151.04. The broad Standard & Poor’s 500 rose 33.36 points, or 0.74%, to 4,547.38. The Nasdaq tech index rose 159.05 points, or 1.13%, to 14,284.53. It was the fifth straight day of gains for the S&P 500 and Nasdaq.

Microsoft shares rose 2.05% to a 52-week high after CEO Satya Nadella said former OpenAI chief Sam Altman would join the tech giant to lead a new artificial intelligence research team.

Shares of chip maker Nvidia rose 2.28%, ending a session at an all-time high ahead of the company’s report of its latest quarter financial results.

The technology and communications services sectors posted the biggest gains in the S&P 500, advancing 1.5 percent and 1 percent, respectively. Shares of Palo Alto Networks jumped 5.24% and Intel rose 2.12%. Paramount and Netflix rose 5.61% and 1.84%.

US markets will be closed on Thursday for the Thanksgiving holiday. On Friday, the trading session will be shorter. Thanksgiving trading has been choppy in recent years, but November is still the best month for the S&P 500, according to the Stock Traders’ Almanac.

Market bulls remain optimistic about the year-end, especially after cooler-than-expected U.S. inflation data released last week calmed investors’ nerves about persistently high prices and provided an encouraging indication that the Federal Reserve may stop raising interest rates. Bond yields also continued their decline on Monday.

“One of the things that has fueled this recent rally since late October and today has been about a half-percent decline in Treasury yields, which is clearly supportive of asset values,” said Tom Heinlin, senior investment strategist at Ascent Private Capital Management in the US Bank.

Mixed results in Asia

The leading stock indexes in the markets of the Asia-Pacific region did not find a common direction on Tuesday, reported CNB.

Shares of chipmakers followed a rally on Wall Street led by Microsoft and Nvidia.

In Taiwan, shares of Taiwan Semiconductor Manufacturing Corporation (TSMC) and Hon Hai Precision Industry (Foxconn) gained 1.39% and 1.49%, respectively. In South Korea, the share price of Samsung Electronics, which supplies Nvidia chips for some of its graphics cards, rose 0.14%.

In mainland China, the benchmark Shanghai Composite fell 0.39 points, or 0.01 percent, to 3,067.93, while the Shenzhen Composite index fell 7.49 points, or 0.39 percent, to 1,929.

Hong Kong’s Hang Seng index shed 44.18 points, or 0.25 percent, to 17,733.89.

Tokyo’s flagship Nikkei 225 index fell 33.89 points, or 0.1%, to 33,354.14.

South Korea’s Kospi advanced 19.22 points, or 0.77%, to 2,510.42.

In Australia, the benchmark ASX 200 registered a rise of 19.8 points, or 0.28%, to 7,078.2 points.

In our country

Indices of the Bulgarian Stock Exchange (BSE) recorded declines in early trading. The main SOFIX index fell 7.26 points, or 0.97%, to 739.27 points. BGBX40 was down 0.98 points, or 0.62%, at 156.29. BGTR30 shed 2.9 points of its value, or 0.37%, to reach 779.76 points. BGREIT remained at the level of 190.89 points.

*The information is current as of 1:10 p.m

The article is in bulgaria

Tags: Weak trading European stock markets ahead release minutes Feds latest meeting Finance


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