Newscasts - Europe Markets Briefing: Traders welcome China's policy shift
09/12/2024 15:43
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_02zskb0g&referenceId=1_02zskb0g&pageId=Newscasts Source: 'Reuters - Business videos' Description: European markets were higher on Monday, led by mining and luxury stocks after signs of fresh stimulus to support China's slowing economy. Oil prices climbed, as traders await for fresh signs of escalation after the toppling of Syrian President Bashar al-Assad’s regime. Short Link: https://refini.tv/3ZsvDGn Video Transcript: The European investors welcome China's policy shift. Welcome to your Europe Markets Briefing. I'm Peter Devlin. European markets were higher on Monday as the new trading week got underway. China's pledge to embrace a moderately loose strategy next year boost its sectors exposed to China. Sentiment was dampened, though, by news of a Chinese antitrust probe into AI chip maker NVIDIA. Equity news as well, Volkswagen workers walked off their jobs on Monday as union leaders threatened to escalate protests. Workers said its management had one last chance to compromise or risk strikes not previously seen next year. VW Stock is among the worst performers among European car makers and is fallen by nearly 25% this year. Earnings to watch tomorrow and equipment rental firm Ashtead Group is expected to post lower half year results. The London listed company is said to be hurt by a rental revenue growth slowdown in the US. Additionally, Britain's Thames Water publishes its financial results for the April October period, with just months before runs out of cash. The water supplier is close to finalizing a GBP3 billion lifeline loan from its creditors. Any comments its CEO makes on its finances and interest from potential equity investors will be of interest. Meanwhile, investor morale in the Eurozone fell in December to its lowest in more than a year. The Sentix index for the block fell -217.5 this month from -12.8 in November, that was the lowest since November 2023. Head of Germany's final reading for November CPI tomorrow, the survey added that the risk of a recession "remains omnipresent for Europe's largest economy." Meanwhile, major brokerage expect the European Central Bank to deliver a 25-basis-point interest rate cut on Thursday. Goldman Sachs and Morgan Stanley have excluded the possibility of a larger 50 basis point move. Money markets currently expect the ECB to cut rates at every meeting through June of next year. While one analyst who spoke to earlier gave us his outlook for rates. I suspect terminal rates will be about 175 and then they'll probably pause if policy needs to ease, they will go further than that. I see that as kind of the neutral to maybe slightly easy level. If you think neutral rates are around 175% to 2% as I do. So that gets you to neutral, maybe gets you a little bit into easy territory as I say. At that point, they'll hopefully have seen inflation get back to target core inflation that is. Escaping with central banks and Bank of England's Dave Ramsden said that they will be vigilant towards greater risk taking. The deputy governor warned over the possibility that investors will take greater risk after a year of relative stability in markets. The UK’s GDP estimate for October released on Friday, will mark the next test for UK investors with an almost 90% chance priced in for an interest rate hold next week. And finally, oil prices climbed, with traders keeping a close eye on developments in the Middle East. Focus remains on the toppling of Syrian President Bashar al-Assad's regime, that threatens more violence as groups tussle for control. That is your Europe Markets Briefing