European markets advanced on Monday as investors continued to monitor corporate
earnings and key economic data points, assessing the risk of recession.
The pan-European Stoxx 600 index climbed 0.7% by late morning, with tech stocks
adding 1.3% to lead gains as all sectors and major bourses traded in positive territory.
The European blue chip index closed Friday’s session down around 0.8% after an
unexpectedly strong U.S. jobs report lowered expectations for a recession, and in turn
increased the likelihood of the Federal Reserve tightening monetary policy more
aggressively to bring down inflation.
Markets in Asia-Pacific were mixed overnight, with Hong Kong’s tech-heavy Hang
Seng index weighing down the region.
U.S. stock futures nudged higher after the S&P 500 closed out a third straight
positive week, with investors turning their attention to a key inflation report on
Wednesday.
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On the data front in Europe, August’s Sentix economic sentiment index for the euro
zone rose fractionally from the previous month, but still pointed to a high likelihood
of recession across the 19-member common currency bloc.
“In the same way that Erwin Schrödinger’s cat was both dead and alive at the same
time, the global economy may be both in a recession and not — at least not yet,” said
HSBC Global Economist James Pomeroy.
“Over the past month, the confusing signals haven’t gotten any clearer, with a second
quarterly contraction in US GDP being at odds with firmer monthly data, upside
surprises to GDP data in Europe and a number of releases suggesting that consumers
keep spending despite their downbeat outlook.”
Corporate earnings continued to drive individual share price movement in Europe,
with Siemens Energy, Porsche and BioNTech among the companies reporting before
the bell on Monday.
British financial services company Hargreaves Lansdown gained more than 7% to
lead the Stoxx 600 after Deutsche Bank raised its price target for the stock.
At the bottom of the index, British media company Future fell 5%.
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