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EU Markets Recover After Worst Week Since February

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On Monday, EU markets closed higher, rebounding from the worst trading week since February. The pan-European Stoxx 600 gained 0.7%. Gains were led by oil and gas stocks. 

Last week, the delta variant, China’s regulatory embargo on tech companies, and the global monetary policy were all focus points, leading to the European stock market declining to its lowest level since February this year. 

The Hang Seng index also recovered from last week’s bearish market, and Asia-Pacific shares edged closing higher on Monday. 

In terms of economic indicators, the EU markets economy declined in August. However, they are still on course for a solid quarter three growth. This is according to data published on Monday, preliminary. 

Eurozone PMI (purchase managers index), a measure of manufacturing activities, was lower than the forecast as well as July’s number. The data reported was 59.5 versus July’s 60.2.  However, it is still above the 50 mark, a key indicator of a growing or contracting economy. 

Furthermore, the UK had labour shortages, and issues around material supply slowed growth. The UK’s PMI dropped to 55.3 from 59.2 in July, declining for the three months in a row and the lowest number since February. 

Growth slowed to a six-month low in the UK as staff shortages and material supply issues weighed on business activity. 

What’s happening on the stock market front

Taking a look at stock movement, Sainsbury’s, the British supermarket chain’s stocks, jumped over 15%. This is a result of a private equity firms’ interest to take over the chain group. 

Nvidia’s $40 billion acquisition of the chipmaker Arm is still in progress and is awaiting an investigation from the UK’s competition commission.  The deal has been hanging in the balance since the UK put a halt on it, sighting national security risks.

Cembra Money Bank’s stocks took a huge dive of more than 30% after it ended its credit card partnership with retailer Migros. 

US stocks edged higher as well, after a rough week on Wall Street, with investors eagerly awaiting the Federal Reserve’s latest monetary policy speech during the Jackson Hole symposium later this week.

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Justin N. Richards

Justin N. Richards is a Florida-based technical analyst, market researcher, educator, and trader. Justin began his career in Chicago in 2001 performing futures market analysis for floor traders at the Chicago Board of Trade and the Chicago Mercantile Exchange. He also worked for numerous brokerage firms during that time, all of which hold him in high regard, and he has been providing outstanding analysis services for traders worldwide ever since. Mr. Richards is an expert in the area of market patterns, price and time analysis as it applies to futures, Forex, and stocks. In addition to these talents, he provides educational services for investors looking to improve their analysis and trade skills. Justin has a B.A. in Business Administration from UCLA and an M.S. in Financial Markets and Trading from the Illinois Institute of Technology. Justin’s professional experience, education, and discipline, not only make him an exceptional analyst, they point him out as a reliable, hard working and intelligent business strategist who is dedicated to his craft.
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