The European markets got off to a positive start Monday, as geopolitical concerns continued to ease. Early strength also came from a surge in Portuguese stocks. A rally in euro-area peripheral bonds was sparked after S&P Global Ratings raised Portugal’s credit rating to investment grade with a stable outlook.
After the solid start to the day, the markets began to back off their early highs around midday and remained range-bound throughout the afternoon.
Traders are looking forward to the Federal Reserve’s 2-day policy meeting, which will begin on Tuesday. Expectations for further tightening from the central bank has faded, especially following the recent hurricanes.
The pan-European Stoxx Europe 600 index advanced 0.29 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.32 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.24 percent.
The DAX of Germany climbed 0.32 percent and the CAC 40 of France rose 0.30 percent. The FTSE 100 of the U.K. gained 0.52 percent and the SMI of Switzerland finished higher by 0.22 percent.
In Paris, utilities EDF and Fortum jumped nearly 2 percent each after an upgrade by Goldman Sachs.
In London, BAE Systems jumped 3.94 percent after signing a deal to supply 24 Typhoon fighter jets to Qatar.
Ryanair lost 2.39 percent after the low-cost airline announced plans to cancel between 40 and 50 flights every day up until 20 September.
Fingerprint plunged 22.14 percent in Stockholm after the smartphone component maker warned of lower revenue in the third quarter, saying fingerprints is currently experiencing a cautious market.
Eurozone inflation climbed to a four-month high in August, as initially estimated, final data from Eurostat showed Monday.
Consumer prices advanced 1.5 percent year-on-year in August, faster than the 1.3 percent increase seen in July. This was the highest since April and in line with the estimate published on August 31.
Nonetheless, inflation continues to stay well below the European Central Bank’s target of ‘below, but close to 2 percent’.
British households’ current financial pressures intensified in September amid rising living costs and subdued pay growth, while their outlook signaled the lowest degree of pessimism for seven months, results of a survey by IHS Markit and market research company Ipsos Mori revealed Monday.
The seasonally adjusted Household Finance Index, of HFI, dropped 42.8 in September from 43.4 in August.
House prices in the United…