(ABM FN-Dow Jones) European stock markets closed significantly higher on Monday, on the first trading day of 2023.
The broad STOXX Europe 600 index rose 1.0 percent to 428.95 points, the German DAX index gave a 1.1 percent gain at 14,069.26 points and the French CAC 40 index showed 1.9 percent gain at 6,594.57 points. The British Stock Exchange closed its doors on Monday.
Trading was thin, because not only was London closed, but Wall Street was also celebrating another day off.
“The new year begins with a continued focus on central banks and inflation, as well as indications of the extent and depth of a potential recession,” Danske-Bak said.
SPI Asset Management considers the publication of the US jobs report on Friday to be the most important number. But the minutes of the Fed’s latest meeting on Wednesday night will also be important to the stock market’s direction this week, according to the asset manager.
“Eurozone economic data has held up well so far, and if the ECB eventually raises interest rates in line with market expectations,” this is unlikely to lead to a significant deterioration in growth, Pimco predicts. If the inflationary trend is dictated by the European Central Bank raising interest rates more sharply, this will reduce the borrowing space, which Pimco believes is a risk to growth.
The market was fed a series of PMIs for the industry on Monday. Manufacturing in the Eurozone contracted less sharply in December. The Manufacturing PMI increased from 47.1 to 47.8. Separate indices for EU member states showed a similar picture.
The euro/dollar was quoted at 1.0659. At the beginning of the trading day, the currency pair was still moving at 1.0700 and when the US stock exchanges closed on Friday, the 1.0702 level was on the boards.
Company news
Auto-related stocks rose relatively strongly, as did real estate.
Vonovia and Unibail, for example, rose 4.2 percent and 4.3 percent, respectively. Mercedes and Renault shares rose 3.9 and 6.8 percent.
The financial sector also had a strong start to the new year. BNP Paribas and ING were among the strongest risers. BNP Paribas won 3.2%, while ING won 2.5%.
In Frankfurt, Zalando was the strongest riser among the major stocks, with a profit of 5.9 percent. Continental shares rose 5.2 percent, while Sartorius fell 6.8 percent.
Atos outperformed, with its share price gaining nearly 20.0 percent. According to French business newspaper Les Echos, Airbus wants to acquire a minority stake in Evidian from Atos.
Michelin rose 3.6 percent in Paris. Eurofins Scientific lost 1.6 percent.
Wall Street
Wall Street was closed Monday for an extra long New Year’s Eve weekend.
Source: ABM Financial News
Following editors from Beursplein 5 ABC Financial News Developments on stock exchanges, and the Amsterdam Stock Exchange in particular, closely watched. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
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