European stocks set to post best week since May
Investors became less concerned about a US recession and anticipated that the Federal Reserve would lower interest rates next month
Investors became less concerned about a U.S. recession and anticipated that the Federal Reserve would lower interest rates next month, such a narrative boosted European stocks poised for their largest weekly gain in three months.
The Stoxx Europe 600 Index increased by 0.3 percent in early London trade. Except for tech and auto shares, all 20 sectors saw gains.
As Italian stock trading resumed following Thursday’s holiday, the FTSE MIB Index increased by 2.0%, outperforming the regional benchmark. Although losses from the recent downturn have been offset by consistent gains this week, the American S&P 500 index and the Stoxx 600 are still below where they were at the beginning of the month.
U.K. In July, retail sales increased by 0.5 percent, as predicted by a Reuters poll, after declining by 0.9 percent in June. Sales volumes increased by 1% in the three months leading up to July. U. S. equities have also seen significant increases; on Thursday, a surge occurred as weekly jobless claims decreased and U.S. S. The data on retail sales was significantly better than anticipated.
Investors further affirmed that a U.S. recession was likely exaggerated, which led to the abrupt global sell-off at the beginning of the month.
Analysts claim that a historical August trend, in which trade is typically shallower, may account for some of the volatility, in addition to the knock-on effects of Japanese monetary policy.
Meanwhile, in a regional survey conducted by Bank of America, investors in European indexes have a huge preference for the UK stock market.
The proportion of participants who declared they would make large investments in UK stocks in the upcoming year increased dramatically between July and August.
Individuals who declared they would purchase UK stocks at an “overweight” percentage to the benchmark index increased from less than 10% in July to more than 30%. Italian, French, and Spanish stocks were the next most popular markets among respondents, after Swiss equities.
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