European stock markets started the week on a positive note following a challenging Friday, when the benchmark index experienced its worst day in over a year. Investors are now focusing on upcoming economic data and the anticipated decision from the European Central Bank (ECB) later in the week.
STOXX 600 Index Rises
The pan-European STOXX 600 index gained 0.5% by 0711 GMT on Monday. This uptick comes after the index posted its worst weekly performance since October 2023. All major regional bourses also saw gains, reflecting a broader market rebound.
Upcoming Economic Data
Market participants are keenly awaiting economic data releases this week. Consumer price figures from Germany, Spain, and France are set to be published, providing insight into inflation trends across the eurozone. Additionally, Britain will release employment data on Tuesday and GDP figures on Wednesday.
Focus on ECB Rate Decision
The spotlight this week is on the ECB’s refinancing rate decision scheduled for Thursday. The central bank is widely expected to lower rates by 25 basis points, a move that could impact economic activity and market sentiment across the region.
Sector Performance Highlights
Technology stocks provided a boost to the benchmark index, advancing by 1%. The travel and leisure sector also outperformed, climbing 1.3%. The sub-index saw significant gains, driven by a 5.2% increase in shares of Entain, the British gambling group, which reported a stronger-than-expected start to the second half of the year.
Adidas AG Faces Setback
In contrast, Adidas AG experienced a 3% decline in its stock price after Barclays downgraded the company to “equal weight” from “overweight.” This downgrade reflects concerns about the company’s future performance and has negatively impacted its share value.
Conclusion
European markets are showing resilience with early gains this week, rebounding from a tough previous week. Investors are closely watching economic indicators and the forthcoming ECB rate decision, which are likely to shape market trends and sentiment in the days ahead.
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