European indices strengthened at the beginning of the week



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European indices strengthened at the beginning of the week

Shares of companies such as mining, technology and automobile companies, which were the most affected by sales on Friday, are leading in terms of price growth at the beginning of this week. In European stock markets, the leading indexes strengthened on Monday, after a sharp decline on Friday, as investors follow the release of financial reports of companies and wait for new macroeconomic indicators to assess the prospects for a recession.

The pan-European STOXX 600 index was up 0.8 percent at around 1 p.m., recovering from Friday's losses, triggered by a better-than-expected US jobs report that raised concerns the Fed will continue aggressive monetary tightening.

At the same time, the London FTSE index was up 0.5 percent, to 7,478 points, the Frankfurt DAX by 0.8 percent, to 13,679 points, and the Paris CAC by one percent, to 6,534 points. Shares of companies such as mining, technology and automobile companies, which were the most affected by sales on Friday, are leading in terms of price growth at the beginning of this week.

Following the release of a report of 528,000 new jobs created in the US in July, investors' focus is gradually shifting to inflation data, due on Wednesday. French Veolia stood out the most with a gain of 3.3 percent, which confirmed that it will sell Suez's British business to Australia's Macquarie Group for 2.4 billion euros.

Stronger dollar down for the week as clues point to inflation peak

The dollar rallied on Friday but was set for a weekly drop as traders weighed improving U.S. inflation data against comments from Federal Reserve officials who cautioned the battle against rising prices was far from over.

U.S. import prices declined for the first time in seven months in July on lower costs for both fuel and non-fuel products, data showed on Friday, in the third report this week to hint inflation may have topped out. Another two key inflation measures, for consumer prices and producer prices, cooled in July, data on Wednesday and Thursday showed, prompting traders to pare back views that the Fed will raise interest rates by 75 basis points for a third consecutive time when it meets in September.