SXXP: Stoxx 600 Set for a Lower Close After Four Winning WeeksEurope’s broad-based index is looking to end a streak of four straight weeks of gains.
- The Stoxx 600 index edged higher early on Friday, but is on track to log a losing week. The broad-based European benchmark has been making higher highs for the past four weeks, propelled by a strong demand for shares across tech, retail, and financial services.
- Banks in the pan-European index were among the biggest winners yesterday as the US earnings season is spreading positive vibes overseas. Individual stock indexes across Europe were a nuanced picture at today’s open with just France’s CAC 40 modestly in the green.
- Still, the Stoxx 600 index has gained has gained a hefty 9% from its opening levels for 2023. The figure is less than a percentage point higher than the performance of its closest cousin in the US – the S&P 500. The US benchmark has added roughly 8% from the start of the year.
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Europe’s Stoxx 600 sinks on rate jittersIt’s all about the rate hikes and investors on both sides of the Atlantic are worried.
- Europe’s region-wide Stoxx 600 finished Monday flat and kicked off Tuesday’s deals with a slight decline as money managers are struggling to gain upside momentum. Individual indexes were off to a muted start of the week, with France’s CAC 40 coming down from a record high.
- Interest rates – all investors talk about – are weighing on European stocks just as much as they do on US stocks. Markets are now looking to find out if the world’s central banks would keep those rates higher for longer to tame inflation.
- American markets remained closed for Presidents Day on Monday, giving traders some time to feel like normal people with rewarding lives and hobbies. Game’s back on today with US equity futures showing a moderate loss ahead of the opening bell in New York.
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Stoxx Europe 600 edges higherEurope’s broad-based benchmark inches higher amid jittery trading
- Dealmaking in European share markets wasn’t super fiery on Wednesday but Thursday is looking much brighter. The pan-continental Stoxx Europe 600 advanced moderately by 0.3% yesterday, but is pointing to the upside today by around 1%.
- Europe’s wider stock average has been making good progress this year, largely in line with its US counterparts. The Stoxx Europe 600 and the US-based S&P 500 are up just over 7% each as money managers on both sides of the Atlantic are happily buying the dip.
- Meanwhile, individual stock indexes in Europe were all in positive territory, with green arrows shooting everywhere. Paris-based CAC 40 took the lead in early deals with a 1.4% gain, followed by Germany’s DAX, up 1.3%. The UK’s FTSE 100 advanced by 0.8%.
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