Energy and banking stocks boost European markets

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Stock update

European stock markets rose as investors bet on financial services and energy companies, which are seen as benefiting from higher growth and interest rates.

The regional Stoxx 600 index rose 0.7% in early London trading, its banking sub-index rose 1.6%, and energy producers rose 2.2%.

Stock prices rose after Fed officials stated that the US economy had recovered from the pandemic enough to cut emergency financial stimulus measures.

The futures market suggests that the S&P 500 index will rise 0.6% in early New York trading, while the technology-focused Nasdaq 100 index will rise 0.5%.Wall Street Stock Market Turn down Last week, but still close to historical highs.

Patrick Harker, chairman of the Philadelphia Federal Reserve Bank, Tell Nikkei “The market is functioning well.” Hacker said that the US$120 billion monthly bond purchase program launched by the U.S. Central Bank in March 2020 to increase loans and expenditures during the pandemic is “no longer relevant.”

He made the comments after Cleveland Federal Reserve Chairman Loretta Meister stated on Friday that the US economy has improved enough to slow asset purchases.

Gregory Perdon, Arbuthnot Latham’s co-chief investment officer, said: “Reinflation trade indicators are all flashing green,” he was referring to A strategy This involves buying stocks in financial services companies that benefit from higher interest rates and other stocks whose wealth is linked to economic growth.

After the Fed begins to reduce stimulus spending, its next step may be to raise interest rates from historical lows.Economists surveyed by the Financial Times expected First rise next year.

Perdon said that fund managers continue to buy stocks in this environment, believing that stocks will perform better in a multi-asset portfolio than government bonds, and government bond yields have remained at a low level throughout the crisis.

“Inflation data keep coming out, which shows that the interest rate path is going higher,” he said.

“It will still drive the stock market because every time we see a little red [in stock markets] We think this may be a trading opportunity to buffer the potential loss of fixed income. ”

Data on Tuesday is expected to show U.S. consumer price inflation More than 5% The third consecutive month is in August.

The 10-year U.S. Treasury bond yield stabilized at 1.338% on Monday higher On Friday, traders sold bonds in response to US factory delivery prices rising faster than economists expected.

The U.S. dollar index, which measures the U.S. dollar against six major currencies, rose 0.2%. The oil benchmark Brent crude oil rose 1.2% to $73.77 per barrel. The euro fell 0.3% against the dollar to $1.1782.

In Asia, Hong Kong’s Hang Seng Index fell 1.5% after the Chinese government strengthened supervision Suppress In the national technology industry, separate Alipay, an application with more than 1 billion users, is owned by Jack Ma’s Ant Group. The Shanghai and Shenzhen 300 Index fell 0.4%.

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