The rise of European equities: positive comments from ECB boost market
Positive comments from the European Central Bank and rising oil prices sent European and London markets soaring.
The European Central Bank
Jeremy Naylor discusses the performance of different stock markets around the world. He starts by mentioning that the European equity markets are expected to open positively, thanks to positive comments from the European Central Bank (ECB) about interest rates.
This news, along with rising oil prices, also boosted the London markets. In the US, the markets saw gains because of the successful initial public offering (IPO) of chip designer ARM Holdings.
Asian markets were also boosted by positive data from China, including better-than-expected retail sales and industrial production. Jeremy explains that the overall excitement in the stock markets is due to a decrease in volatility. However, he also mentions that the expiration of futures and options contracts, known as triple witching, may influence the day's trading.
The FTSE 100 and DAX
The analysis then looks at specific stock markets. The UK markets had a significant rise the previous day, with the FTSE 100 up over 2.3% and trading at the highest levels since May. The German DAX and French markets also performed well.
However, Stellantis, a French company, saw a drop due to strike action in the US. In Asian markets, the Hang Seng stock index in Hong Kong saw gains for a second day. Moving on to Wall Street, the Dow had a strong day, marking its best performance since early August.
The S&P 500 and Nasdaq
The S&P 500 and NASDAQ also saw gains. Regarding economic data and currency markets, China released positive data on industrial production and retail sales. As a result, the Chinese yuan strengthened against the US dollar. Looking ahead, the US is expected to release data on industrial production and Michigan consumer sentiment.
Jeremy ends with an overview of key companies. Adobe Systems reported better-than-expected numbers in the third quarter, but its fourth quarter outlook disappointed the markets. ARM Holdings had a successful intitail public offering (IPO), but some consider its valuation to be high compared to its earnings forecast.
Auto manufacturers like Ford, General Motors, and Stellantis may be affected by strike action. The oil market continues to rally, while gold and copper prices are showing positive trends.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.