Europe open: Stocks gain ahead of US data as Fed's interest rate decision looms
European stocks gained ahead of the release of US reports on industrial and manufacturing production.
CAC 40
8,091.86
16:59 24/04/24
CGG
€0.42
17:19 24/04/24
Danske Bank
kr87.25
18:16 26/06/09
Technip
€67.40
16:30 19/01/17
Analysts forecast industrial output rose 0.6% in November following a 0.1% fall a month earlier. Manufacturing production is expected to have gained 0.7% last month after a 0.2% increase in October.
The Federal Reserve is keeping a close watch on data as the US central bank weighs the timing of its first interest rate hike. The Fed unveils its rate decision on Wednesday but is not expected to raise rates until 2015.
Aside from reports out in the US, the economic calendar for Monday is thin, with investors turning their focus to oil prices and political uncertainty surrounding the impending Greek elections.
“The main thing weighing on sentiment recently and driving certain equities lower is the continued sell-off in oil, with the decline having continued on Friday having broken through the $60 a barrel level in WTI crude,” according to Craig Erlam, analyst at Alpari UK.
Brent crude oil was sitting at $63.04 per barrel while West Texas Intermediate was at $58.61 in morning trade, after OPEC and IEA cut their forecasts for oil demand.
Meanwhile, the EU’s finance commissioner, Pierre Moscovici, flies into Athens on Monday after the Greek government’s abrupt decision to bring forward the presidential elections.
Greek leftist party Syriza’s lead over the ruling conservatives has narrowed slightly, weekend polls showed.
On the company front, CGG declined as Technip SA walked away from a bid to buy the French seismic surveyor, according to a statement. Technip gained on the news.
Danske Bank A/S edged lower after the Danish bank said it will write down 9bn kroner in goodwill following talks with the country’s financial regulator.
The euro fell 0.15% to $1.2443.