European markets witnessed a surge, with the STOXX 600 index rising 0.2% by 0930 GMT, reaching a more than two-month high.
This uplift was primarily fuelled by the energy and financial sectors, with the index now eyeing its most significant monthly jump since January.
Energy stocks (.SXEP) led the gains, rising 1.1% as oil prices increased ahead of a crucial OPEC+ meeting. Insurance stocks (.SXIP) also experienced a 0.6% boost.
Data from Europe revealed a 0.1% contraction in the French economy in Q3, while inflation eased more than expected, spurring investor expectations for an ECB rate cut in April. Germany’s retail sales exceeded forecasts for October, and unemployment figures matched predictions in November. The DAX (.GDAXI) and CAC 40 index (.FCHI) both reflected these developments, with modest gains.
Italy’s FTSE MIB index (.FTMIB) reached a fresh 15-year high, increasing by 0.2%, and has shown remarkable growth of 25% in 2023.
Flax attributed this to lower bond yields positively impacting markets with high debt, like Italy.
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