European shares go as SAP drags, investors await U.S. data, EC
European stocks had a mixed day with some declines:
Reason for Decline: The German software company SAP had a tough day due to a weak forecast from a U.S. tech company called Oracle. Investors also got a bit nervous ahead of key U.S. inflation data and an interest rate decision by the European Central Bank.
Market Movements: Overall, European stocks, represented by the STOXX 600 index, went down slightly by 0.2%. Companies in basic resources (like metals) dropped by 0.5% because the U.S. dollar got stronger, making these resources more expensive.
Different Story in the UK: The UK's FTSE 100, on the other hand, went up by 0.4%. This was partly because the British pound got weaker after reports showed that the job market wasn't doing great, even though people's wages were going up. This mixed news has left things uncertain before the Bank of England's decision on interest rates next week.
Economic Highlights: Spain's consumer prices went up by 2.6% in August, and a survey in Germany showed that investor sentiment improved in September.
Expectations for the ECB: Traders in the money market are betting more on the European Central Bank (ECB) raising interest rates by 25 basis points to 4% during its upcoming meeting.
Looking at U.S. Data: Investors are also keeping an eye on U.S. inflation data, which is coming out on Wednesday. This information could affect expectations about when global interest rates might stop rising.
Individual Stocks: Airbus went down by 2.4% after an engine supplier, Pratt & Whitney, warned about a manufacturing issue that could ground many Airbus jets. Associated British Foods went up by 5.3% after they increased their profit outlook. Smurfit Kappa went down by 10.2% after announcing a merger with WestRock to create a big paper and packaging company. HelloFresh went up by 8.2% after J.P. Morgan added it to their analyst focus list.
Reason for Decline: The German software company SAP had a tough day due to a weak forecast from a U.S. tech company called Oracle. Investors also got a bit nervous ahead of key U.S. inflation data and an interest rate decision by the European Central Bank.
Market Movements: Overall, European stocks, represented by the STOXX 600 index, went down slightly by 0.2%. Companies in basic resources (like metals) dropped by 0.5% because the U.S. dollar got stronger, making these resources more expensive.
Different Story in the UK: The UK's FTSE 100, on the other hand, went up by 0.4%. This was partly because the British pound got weaker after reports showed that the job market wasn't doing great, even though people's wages were going up. This mixed news has left things uncertain before the Bank of England's decision on interest rates next week.
Economic Highlights: Spain's consumer prices went up by 2.6% in August, and a survey in Germany showed that investor sentiment improved in September.
Expectations for the ECB: Traders in the money market are betting more on the European Central Bank (ECB) raising interest rates by 25 basis points to 4% during its upcoming meeting.
Looking at U.S. Data: Investors are also keeping an eye on U.S. inflation data, which is coming out on Wednesday. This information could affect expectations about when global interest rates might stop rising.
Individual Stocks: Airbus went down by 2.4% after an engine supplier, Pratt & Whitney, warned about a manufacturing issue that could ground many Airbus jets. Associated British Foods went up by 5.3% after they increased their profit outlook. Smurfit Kappa went down by 10.2% after announcing a merger with WestRock to create a big paper and packaging company. HelloFresh went up by 8.2% after J.P. Morgan added it to their analyst focus list.
