Positive Growth Across European Markets
Photo by Yuji Sakai
The London index (UKX) showed a modest gain of 0.21%, while Germany’s DAX index rose by 0.28% and France’s CAC index by 0.31%. Noteworthy was the increase in France’s manufacturing climate indicator to 98.8 in August 2024.
On the flip side, Hungary experienced a rise in its unemployment rate to 4.2% in the period of May-July 2024. Similarly, Sweden saw its unemployment rate climb to 7.7% in July.
Industrial production in Lithuania surged impressively by 11.1% year-on-year in July, signaling a positive trend in the region.
Market Insights and Expectations
Despite some economic challenges, investors demonstrated confidence in the European market. The pan-European Stoxx 600 index moved up by 0.16%, with anticipation surrounding US Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Economic Symposium. This favorable momentum puts the market on track to achieve a third consecutive weekly gain, the most extended streak in nearly five months.
Notably, the median expectation for inflation in the Euro Area remained steady at 2.8% for three months in a row after a dip in May, marking the lowest level since September 2021.
Looking ahead, the European session is expected to be relatively subdued, reflecting a current state of balance and stability in the market dynamics.
Bond Yields and Currency Trends
Observing the bond market, the US 10-year Treasury yield experienced a marginal decrease of less than 1 basis point to 3.86%. In contrast, Germany’s 10-year yield rose by 1 basis point to 2.25%, while the UK’s 10-year yield remained almost unchanged at 3.96%.
Within the currency exchange realm, the Euro-American Dollar pair (EUR:USD) continued to be of interest, alongside other pairings such as Pound Sterling to US Dollar (GBP:USD) and Swiss Franc to US Dollar (CHF:USD).
Market Diversification Through ETFs
For investors seeking diversification, various Exchange-Traded Funds (ETFs) such as EWG, GF, EWI, EWQ, FGM, DAX, FLGR, FXB, EWU, FKU, EWUS, FLGB, and GREK present opportunities to explore different market segments and regions.
