On Friday, the 20th of September 2019, a stack of European stock indices posted modest gains over an upsurge of energy stocks following attack on Saudi Aramco oil facilities last weekend that wiped out almost half of the Kingdom’s crude oil production, while a rally of financials including large lenders following a Fed rate-cut and a bonanza of fiscal stimulus by ECB Chair Draghi that would likely to leave next ECB chief Lagarde almost empty-handed added to investors’ optimism.
Aside from that, a decent boost on Danish pharmaceutical Novo Nordisk, which rose more than 2.5 per cent to 355.45 Danish Krona following it’s a US approval of its best-selling oral diabetic drug had fuelled up risk-appetite despite a bleak geopolitical backdrop.
Meanwhile, a number of investors were reported to seek safety on defensives likes of utilities, foods and beverages alongside real estates ahead of a week jampacked with critical financial data, which are expected to rattle global stocks next week.
Besdies, adding that a UN General Assembly next week might cast further clouds on global economic outlook amid growing geo-political grudges, a senior market economist at Rabobank said on Friday’s (September 20th) European market closure, “After (the general assembly) things may become more uncertain, so that could explain the moves into defensive stocks.
Markets are basically keeping their gunpowder dry for afterwards when there is certainty about where things are headed. ” Quoting statistics, reportedly the regional Pan-European STOXX 600 wrapped up the day 0.30 per cent higher after witnessing an en masse market volatility throughout the session, while London’s FTSE 100 faltered 0.16 per cent to 7,344.92, Frankfurt’s trade-sensitive DAX ended the day a penny down to 12,468.01 and French CAC 40 shed 0.56 per cent, while Italy’s MIB FTSE ended the day almost unchanged at 22,123.25 and Madrid’s IBEX 35 curtained off the day in an upbeat note with a gain of 0.47 per cent to 9,179.