European stocks ended mostly higher on Monday as gains in the energy sector offset a slump in travel stocks following Friday's terrorist attacks in Paris. The euro weakened on expectations that the European Central Bank will have to expand the monetary stimulus program and investors sought the safety of the US dollar and Japanese yen. The Stoxx Europe 600 index edged up 0.3% while France's CAC lost only 0.12%. The travel and leisure sector was hit hard with the stocks in STOXX 600 Travel & Leisure index losing around 2.3 billion euros ($2.46 billion) in market capitalization amid fears that tourism would fall on safety concerns. Eurostat report indicated inflation in the euro-zone rose 0.1% in October. Today at 11:00 CET October ZEW Survey results will be released in euro-zone. The tentative outlook is positive. At 10:30 CET October inflation data will be published in UK. The tentative outlook is positive.
Nikkei closed 1.2% higher today as yen weakened against the dollar on receding risk aversion. Exporters advanced with Toyota Motor Corp gaining 1.9%, Tokyo Electron surging 2.7% and Fanuc Corp rallying 3.7%.
Oil futures prices are edging lower today after closing higher on Monday on rising geopolitical tensions as France carried airstrikes in Syria and news that Organization of the Petroleum Exporting Countries crude output declined for third consecutive month. Platts survey indicated OPEC oil production in October fell by 120,000 barrels a day from a month earlier led by output drops in Saudi Arabia and Iraq. However, analysts point to seasonality and adverse weather factors as reasons for OPEC decline, and no change in cartel’s strategy of keeping up production to defend its oil market share.
Gold futures prices are falling today as investors shifted their focus back to a potential rate hike by the Fed in December.
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