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European stocks rise as risk sentiment improves

written by Bella Palmer
dax

The DAX index in Germany traded 0.3 per cent higher, the FTSE 100 in the U.K. jumped 0.4 per cent, and the CAC 40 in France gained 0.7 per cent

European stock markets edged higher Monday, benefiting from increased risk sentiment as crude prices dropped, at the start of a week packed with event risks.

At 15:05 GMT, the DAX index in Germany traded 0.3 per cent higher, the FTSE 100 in the U.K. jumped 0.4 per cent, and the CAC 40 in France gained 0.7 per cent.

Elsewhere, Monday has been thin on economic data releases, but investors will be looking forward to the release of eurozone third-quarter GDP and inflation later in the week to guide how aggressively the ECB will cut interest rates going forward.

The ECB has cut interest rates three times already this year, all by 25 bps, but speculation is growing that ECB policymakers will agree to a bigger rate cut at the next meeting.

Data released earlier Monday showed that Ifo's indicator for German export expectations dropped to minus 6.7 points in October from minus 6.5 points the previous month, with the automotive and metal sectors anticipating the heaviest losses in international trade.

Britain's new Labour government also unveils its first budget on Wednesday, while Friday sees the release of the widely-watched monthly official jobs report in the US.

There are more quarterly corporate earnings to digest in Europe this week, with results from Philips Monday’s highlight.

The Dutch medical devices maker's stock plunged 17 per cent after the company lowered its sales forecast for the year due to falling demand in China, which pushed its order intake down 2 per cent in the third quarter.

Philips now expects comparable sales to rise by 0.5 per cent to 1.5 per cent in 2024, down from an earlier expectation of 3 per cent to 5 per cent.

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