European markets edged up on Monday as heightened tensions in the Gulf boosted oil prices, while investors exercised caution ahead of this week’s European Central Bank meeting.
The Stoxx 600 SXXP, +0.07% rose 0.1% and the FTSE 100 UKX, +0.40% climbed 0.3% as energy and mining stocks led the way as crude CL00, +1.76% jumped 1%.
The DAX DAX, +0.21% and the CAC PX1, +0.13% also nudged 0.1% higher as Thursday’s ECB meeting kept markets in check
What’s moving the markets?
Crude prices continued to rise as tensions mounted following Iran’s seizure of a British tanker in the Strait of Hormuz, helping oil majors to post gains.
The European Central Bank’s upcoming policy meeting on Thursday held the attention of European stocks.
The central bank will reveal whether it will cut rates or wait until September, with the latter more likely but investors will be focused on just how dovish Mario Draghi is in his remarks.
The Federal Reserve’s meeting next week also looms over European markets.
Speaking to Market Watch, Markets.com analyst Neil Wilson said European equities were firmer on Monday but still in a longer-term downtrend after early July highs.
“Largely European markets are lacking direction and probably shaping up for the ECB meeting this week.
“This is a significant risk event for equities in Europe.”
The pound continued its slide, falling 0.3% to $1.247, as fears of a no-deal Brexit ramped up ahead of the result of the Conservative Party leadership contest.
Which stocks are active?
Dutch technology company Philips PHIA, +4.39% climbed 4.2% after second quarter profits beat analysts’ expectations due to strong performances at its diagnosis and treatment businesses.
Premier Inn owner Whitbread WTB, -3.92% dropped 4.4% as it completed a programme to return £2.5 billion to shareholders following the sale of Costa Coffee to Coca-Cola last year. The company said it wasn’t planning any further returns of capital.
Add Comment