Europe midday: Shares hold gains on China stimulus hopes

by | Sep 4, 2023

(Sharecast News) – European markets held gains at midday on Monday on the back of a strong session in Asia, boosted by Chinese moves to stimulate the country’s struggling economy.
The pan-Europe Stoxx 600 index was up 0.56% with all major bourses up. Jobs data from the US on Friday also lifted sentiment on hopes that inflationary pressure may be easing. With US markets closed for the Labor Day holiday there was little else to drive markets on a quiet data and corporate day.

Asian stocks rallied after the weekend vote by creditors in favour of restructuring a bond repayment by troubled Chinese property developer Country Garden. Authorities also lowered downpayment requirements for first and second-time home buyers, in another effort to stimulate the struggling economy.

“Friday’s US jobs numbers showed the tightness in the jobs market was easing, while the United States is still considered resilient enough to avoid a recession. Given the sheer size of the American economy and its interconnectedness with the rest of the world, its health is a big driver of sentiment,” said Hargreaves Lansdown analyst Susannah Streeter.

“There is an expectation that interest rates will be kept on hold at the upcoming Fed meeting, and now might not budge by the end of the year, offering a bit of relief for companies and consumers who had been bracing for further hikes in borrowing costs.”

In economic news, German trade data showed a 0.9% month-on-month fall in exports in July, while imports rose by 1.4%.

Exports to other EU economies rose month on month by 0.5%, while exports to non-EU economies fell 2.5%, despite another increase in exports to the US and China, largely due to a 3.5% slump in trade to the UK.

Imports from China plunged 5.8%, and those to the UK. fell by 3.2%, but imports from the US picked up 6.1% to €7.9bn. Imports from the UK dropped by 3.2% to £3bn.

Exports to Russia were up on the month but remain just over 30% below their level in July last year. Imports from Russia fell sharply by 15.7% on the month, and are down 91.8% from their level last July. These figures reflect the impact of EU sanctions on Russia after its unprovoked invasion of Ukraine.

In equity news, video game maker CD Projekt gained as it unveiled its latest plans.

Reporting by Frank Prenesti for

Related articles

Europe open: China property worries, oil price push stocks lower

Europe open: China property worries, oil price push stocks lower

(Sharecast News) - European shares opened lower on Monday as worries about China's troubled property sector continued with developer Evergrande saying it would not be able to complete a planned restructure, while a rising oil prices also weighed on sentiment. The...

Latest Articles

Redde Northgate says demand still outstripping supply in UK, Ireland

Cussons holds guidance despite fall in FY profits

(Sharecast News) - Personal care consumer goods maker PZ Cussons on Tuesday held annual guidance despite a fall in full-year profits as cost inflation and issues at its Nigerian operation continued to weigh. The maker of Imperial Leather soap said pre-tax profit fell...

British Land upbeat as leasing activity picks up in Q2

Volumes, pricing drive 20% profit rise at Smiths

(Sharecast News) - Engineering group Smiths hailed a 20% rise in annual operating profit, driven by volume growth and higher prices which offset the impact of inflation. The company on Monday said profit for the year to July 31 came in at £501m as revenue jumped 18.3%...

Sector movers: Personal Goods, Big Tobacco pace losses

Sector movers: Personal Goods, Big Tobacco pace losses

(Sharecast News) - Personal Goods was at the bottom of the pile at the start of the week as concerns around China's property sector continued to nag investors. Hence the hefty decline in luxury goods retailers including Burberry. On Sunday, Chinese property developer...

Join our mailing list

Subscribe to our mailing list to receive regular updates!

No Fields Found.