(Sharecast News) – European markets started the week in positive mode on the back of a strong session in Asia.
The pan-Europe Stoxx 600 index was up 0.55% in early deals 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.
“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.
Reporting by Frank Prenesti for Sharecast.com