The Stoxx 600 Index was up 0.7% as of 8:02 a.m. in London, tracking a rally in Asian peers as China cut stamp duty on stock trades for the first time since 2008 and pledged to slow the pace of initial public offerings. Technology and construction stocks led the gains in Europe as all industry sub-indexes advanced.
Stock markets in the UK are closed for a local holiday. Among individual movers, Valneva SE rallied as it reported positive initial Phase-3 safety data in adolescents for its single-dose chikungunya virus vaccine candidate. A rally in Europe’s benchmark index has stalled this month as worries about persistently hawkish central banks lifted bond yields. With technical indicators flashing bearish signals — such as the failed break-out in July and the current short-term downtrend — the momentum for stocks now looks negative.
Ulrich Urbahn, head of multi-asset strategy and research at Berenberg, said that while the new stimulus measures from China should boost stocks in the short term, US labor market data this Friday will have a strong bearing on the market. “Central banks remain data-dependent, which makes the outlook more uncertain,” Urbahn said.
Trading could also be more volatile as, starting Monday, Deutsche Boerse AG’s Eurex will list Euro Stoxx 50 derivatives that expire every weekday, following US peers who introduced the now-booming contracts tied to the S&P 500 last year. Every trading session, investors in Europe will be able to buy and sell derivatives expiring the same day, known as zero-days-to-expiration contracts, or 0DTE.
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BNNBloomberg - 🏆 83. / 50 Read more »