(Reuters) – European stocks ended higher on Monday, after a relatively quiet day marked by speculation about the possibility of a rate cut by the Federal Reserve.
In Paris, the CAC 40 gained 0.77% to 7,507.10 points. In Frankfurt, the Dax gained 0.58% while in London, the FTSE 100 grew by 0.63%.
The EuroStoxx 50 index rose by 0.65%, the FTSEurofirst 300 by 0.63% and the Stoxx 600 by 0.64%.
VALUES
European defence stocks fell in early trading, weighed down by a German media report that the German government intended to withhold further aid to Ukraine due to budgetary constraints.
This information was later denied by a government spokesperson, saying the report was “incorrect”.
BioNTech gained 7.15% after the Food and Drug Administration partially lifted restrictions on the company’s cancer drug trial.
Varta fell 44.21% after earlier falling nearly 80% as the group announced a restructuring agreement with its creditors.
Nexans lost 2.25% after Goldman Sachs lowered its recommendation to “neutral” from “buy”.
Bavarian Nordic BAVA.CO lost 4.8% after announcing increased production of its MPOX vaccine.
A WALL STREET
The Wall Street Stock Exchange, for its part, continued its rise which began at the opening.
The Dow Jones is up 0.48%, compared to 0.43% for the Standard & Poor’s 500 and 0.42% for the Nasdaq.
In stocks, Liquidia lost 37.35% after the FDA refused to give final approval to the pharmaceutical group’s drug for hypertension.
CHANGES
Currency markets are positioning for the Jackson Hole symposium as accommodative monetary policy statements put pressure on the dollar.
RATE
Yields continued to fall on Monday as investors braced for a possible Fed rate cut in September.
OIL
Oil prices fell Monday as fears of weaker demand in China, the world’s top crude importer, weighed on market sentiment. Investors were also focused on progress in Middle East ceasefire talks, which could reduce supply risks.
Brent lost 0.54% to $79.25 per barrel, while American light crude (West Texas Intermediate, WTI) fell 0.46% to $76.30.
TO BE CONTINUED TUESDAY:
Investors will see German producer price figures for July on Tuesday at around 0600 GMT, as well as final inflation figures for the Eurozone at around 0900 GMT.
In New York, Lowe’s will report its second-quarter results.
(Written by Pauline Foret, edited by Kate Entringer)
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