Market commentary: German data shows strong exports, lower unemployment

European stock markets managed to gain some ground on Monday with The Stoxx Europe 600 index jumping half a percent, extending its monthly advance to close almost three percent higher as Investors geared up for a busy week of economic events, in particular the European Central Bank meeting.

In the past two months Mario Draghi has emphasized the central bank’s willingness to do more to boost growth and inflation after stating that the ECB will do “whatever it takes to save the Euro.”

Both the German DAX and France’s CAC 40 enjoyed gains with the DAX up almost 1 percent and the CAC up more than half a percent. Leading the way up was the industrial electronics company, Infineon Technologies AG that jumped over 3 percent after JPMorgan Chase & Co. assigned an updated price target for the company.  Also leading the way up was Deutsche Lufthansa AG that advanced almost 2 percent after the airline reached a pay deal with 33,000 workers over the weekend.

Other German data showed exports from the country to Europe and the U.S. rose strongly in the first nine months of the year, and this morning German unemployment rates fell to record lows on domestic demand, bolstering confidence in the growth prospects for Europe’s largest economy.

In the UK the FTSE 100 slipped marginally weighed down by bank shares. Banking stocks slipped in in anticipation of the Bank of England’s stress-test results for the sector, due Tuesday.  The biggest losers were HSBC and Royal Bank of Scotland that both shed 1 percent.

Anheuser-Busch InBev also fell after the Brewer announced their plans to sell two of SABMiller PLC’s best-known beer brands, Grolsch and Peroni, as the company seeks to ease European regulatory concerns. 

U.S. stocks dropped marginally lower on Monday with the S&P falling just under half a percent.  However the notion that the Federal Reserve is confident enough in the U.S. economy to potentially raise rates in December for the first time in nearly a decade helped keep the U.S. stock market afloat in November.

This article was issued by Andrew Cassar Torregiani, Trader/ Analyst at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.