The leading European stock markets concluded Monday's trading session on a positive note, buoyed by robust performances in Asian markets and encouraging labor statistics from the United States, which bolstered investor confidence. Nonetheless, gains were tempered by escalating geopolitical tensions in the Middle East and caution surrounding upcoming critical economic indicators, such as U.S. consumer price inflation data.
Reports indicate that Israeli defense forces escalated their aerial offensives on Gaza and Beirut. These airstrikes coincided with the anniversary of Hamas’ incursion into Israeli territory, marking a pivotal moment in the ongoing Middle Eastern conflict.
Casualties were reported in strikes on a mosque and a repurposed school serving as a refugee center, as per Gaza's Hamas-operated health ministry. The Israeli military alleged that Hamas operatives were present at these locations.
The pan-European STOXX 600 index saw a modest increase of 0.18%, while the UK's FTSE 100 rose by 0.28%. France's CAC 40 advanced by 0.46%, although the UK's FTSE experienced a slight dip of 0.09%. Switzerland’s SMI inched up by 0.1%.
In other European markets, Austria, Denmark, Iceland, the Netherlands, Portugal, and Spain finished on a positive note. Conversely, Belgium, Finland, Greece, Norway, Russia, and Turkey ended the day lower, with markets in Poland and Sweden remaining unchanged.
In the UK financial sphere, Natwest Group achieved a nearly 3.5% rise. Shell and Convatec Group registered gains of 2.35% and 2.1%, respectively. Other notables including Standard Chartered, Barclays, and Prudential saw increases ranging from 1% to 1.6%.
Endeavour Mining faced a substantial decline of 5.6%, with Barratt Developments, Smith & Nephew, and JD Sports Fashion experiencing losses between 1.3% and 3.3%.
In Germany, Commerzbank posted gains exceeding 2%. Companies such as Porsche, Deutsche Bank, and HeidelbergCement also closed significantly higher. However, stocks like Rheinmetall, Munich RE, and Hannover Rueck saw declines between 2.6% and 2.8%.
The French market witnessed Kering ascend more than 4.5%, while LVMH experienced a 2.7% surge. Carrefour increased by almost 2%, with BNP Paribas, Orange, and others showing gains between 1% and 1.6%. Capgemini and Teleperformance fell by approximately 2.7%, alongside declines in Safran, Unibail-Rodamco, and Edenred.
Economically, Germany faced a sharper than anticipated contraction in factory orders for August, with new orders dropping 5.8% monthly, reversing July’s revised expansion of 3.9%. This marked the most significant decrease since January. Without considering large orders, there was a decline of 3.4% from July.
Meanwhile, UK housing prices surged at the fastest annual pace in nearly two years in September due to base effects, climbing 4.7% year-on-year, up from August’s 4.3% increase. This represents the most substantial rise since November 2022, with monthly prices steady at a growth rate of 0.3%.
In the Eurozone, investor sentiment improved for the first time in four months in October, suggesting a tentative recovery amid rising expectations fueled by the European Central Bank's rate reductions and economic stimuli from China. The Sentix investor confidence index rose to -13.8 from September’s -15.4.
According to Eurostat figures, Eurozone retail sales grew 0.2% month-on-month in August, aligning with expectations and reversing a period of stagnation.