European stocks closed higher on Monday in a choppy trade after opening lower following the disappointing data on China’s manufacturing activity. Caixin China manufacturing purchasing managers index indicated the manufacturing activity contracted for an eighth straight month in October. Investor optimism was boosted later as PMIs for euro-zone and Germany came in higher than expected, easing concerns about the negative impact on euro-zone of slowing growth in China and emerging markets. The DAX 30 index recorded the biggest gain among the European indices as it rose 0.9%. Markets were also supported by the comments of European Central Bank (ECB) president Mario Draghi over the weekend that ECB was ready to do what it takes to keep its medium-term inflation target on course. Banks were among best performers after the Greek banks passed the ECB stress tests, indicating the 14 .4 billion euros of collective capital shortfall of four major banks was less than the 25 billion maximum allocated for bank recapitalisation as part of the country's bailout agreement. French carmaker Renault gained 4.2 % on data indicating increasing market share as French car registrations rose 1% in October. No important economic data are expected today in euro-zone. At 19:00 CET ECB president Draghi will speak in Frankfurt.
Japan’s markets are closed today for a Culture Day holiday. As market participants expected the Reserve Bank of Australia kept its cash rate today unchanged at a record low of 2.0%, but said further easing was possible.
Several commodity futures prices are rising today after yesterday’s retreat following weak Chinese PMI data.
Brent oil prices are falling today on concerns over weak global demand and rising oil production in Russia.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.