Stoxx 600, FTSE, DAX, data
European stock markets started the new month on a positive note, with the defense and health-care sectors seeing gains due to corporate news.
The Stoxx Aerospace and Defense index surged by 2.2% following the announcement by the U.K. government that Norway had placed a £10 billion order for British-made warships. This deal, the U.K.’s largest warship export agreement by value, is expected to create 4,000 jobs until the 2030s.
Companies like BAE Systems and Babcock International in the defense sector saw their shares rise as a result of the news. In the health-care sector, Danish pharmaceutical giant Novo Nordisk saw a 1.8% increase in its stock price after releasing trial data on its drug Wegovy.
The study on Wegovy showed promising results in reducing the risk of heart disease compared to rival drugs produced by Eli Lilly. Investors are closely monitoring the competition in the weight loss space.
Meanwhile, European markets closed lower on Friday, with focus on inflation data and the possibility of the U.S. Federal Reserve cutting interest rates in September. Fed Chair Jerome Powell’s comments have increased expectations for a rate cut at the upcoming meeting.
Stoxx 600 index.
The European data calendar is quiet today, with focus on Turkish growth data and EU unemployment figures.
Last Friday, regional markets closed lower as inflation data from Europe and the U.S. were analyzed. Investors are speculating on the possibility of a rate cut by the U.S. Federal Reserve in September following comments by Fed Chair Jerome Powell.
In Asia-Pacific markets, there was mixed trading overnight as investors analyzed China’s manufacturing data for August. The country’s manufacturing PMI showed improvement, indicating a potential turnaround.
Additionally, India-China relations are under scrutiny after both countries emphasized their partnership during a regional security meeting. Chinese President Xi Jinping is expected to address the summit.
U.S. financial markets are closed today for the Labor Day holiday.
— Contribution by Amala Balakrishner
