European Stocks Steady Despite Gaza Risks
European stocks were steady on Wednesday as traders weighed the risks of the ongoing conflict in Gaza against the potential for a global economic recovery. The Stoxx Europe 600 Index was little changed, while the U.K.’s FTSE 100 Index and Germany’s DAX Index both rose slightly.
Lonza Sinks on Profit Warning
Swiss chemicals maker Lonza Group AG was the biggest loser on the Stoxx 600, falling more than 5% after it warned that its full-year profit would be lower than expected. The company said that it had been hit by a slowdown in demand for its products due to the pandemic.
Tech Stocks Rebound
Tech stocks were among the biggest gainers on the Stoxx 600, with the sector up more than 1%. The rebound came after a sell-off in the sector on Tuesday, when investors took profits following a strong run in recent weeks.
Gaza Conflict Weighs on Markets
The conflict in Gaza continued to weigh on markets, with investors concerned about the potential for a wider conflict in the region. Israel and Hamas have been exchanging fire since Monday, with no sign of a ceasefire in sight.
Oil Prices Steady
Oil prices were steady on Wednesday, with Brent crude trading at around $42 a barrel. Prices have been supported by expectations of a global economic recovery, although the ongoing conflict in Gaza has kept a lid on gains.
U.S. Futures Rise
U.S. stock futures were higher on Wednesday, with the S&P 500 and Nasdaq 100 both up around 0.5%. Investors were encouraged by news that the U.S. Senate had passed a $2.2 trillion stimulus package, which is expected to provide a boost to the economy.
European Central Bank Meeting
The European Central Bank is due to hold its latest policy meeting on Thursday, with investors expecting the bank to keep interest rates on hold. The ECB is expected to maintain its accommodative stance, with the bank’s president, Christine Lagarde, saying last week that the bank was ready to act if needed.
Outlook
European stocks were steady on Wednesday as traders weighed the risks of the ongoing conflict in Gaza against the potential for a global economic recovery. The Stoxx Europe 600 Index was little changed, while the U.K.’s FTSE 100 Index and Germany’s DAX Index both rose slightly. Investors were encouraged by news that the U.S. Senate had passed a $2.2 trillion stimulus package, which is expected to provide a boost to the economy. The European Central Bank is due to hold its latest policy meeting on Thursday, with investors expecting the bank to keep interest rates on hold. Oil prices were steady on Wednesday, with Brent crude trading at around $42 a barrel. Prices have been supported by expectations of a global economic recovery, although the ongoing conflict in Gaza has kept a lid on gains. Tech stocks were among the biggest gainers on the Stoxx 600, with the sector up more than 1%. The rebound came after a sell-off in the sector on Tuesday, when investors took profits following a strong run in recent weeks. Swiss chemicals maker Lonza Group AG was the biggest loser on the Stoxx 600, falling more than 5% after it warned that its full-year profit would be lower than expected. The company said that it had been hit by a slowdown in demand for its products due to the pandemic.
Overall, European stocks were steady on Wednesday as traders weighed the risks of the ongoing conflict in Gaza against the potential for a global economic recovery. Investors were encouraged by news that the U.S. Senate had passed a $2.2 trillion stimulus package, which is expected to provide a boost to the economy. The European Central Bank is due to hold its latest policy meeting on Thursday, with investors expecting the bank to keep interest rates on hold. Oil prices were steady on Wednesday, with Brent crude trading at around $42 a barrel. Tech stocks were among the biggest gainers on the Stoxx 600, while Swiss chemicals maker Lonza Group AG was the biggest loser on the Stoxx 600.