European bourses tracked moderately higher midday Monday as traders awaited fresh market signals and central bank actions in Europe and Beijing. The People's Bank of China Governor Pan Gongsheng will conduct a press conference tomorrow on financial support for economic development, as reported by a state information office.
This announcement has generated considerable interest among investors looking to gauge economic strategies in light of global market conditions. In Europe, the Swiss National Bank and Sweden's central bank are set to hold policy sessions this week, with both institutions expected to moderately ease their monetary stances.
This prospect has encouraged a cautious but optimistic sentiment in the markets, particularly in the technology and retail sectors, which led the gainers during the trading session. Conversely, bank shares lagged, reflecting ongoing concerns about profitability and regulatory challenges in the sector. As European markets reacted, investors also paid attention to Wall Street futures, which modestly signaled positive movement, although mixed and muted closes were observed overnight on Asian exchanges.
The flash Eurozone composite PMI output index for September was released, showing a reading of 48.9, down from 51.0 in August. This figure falls below the critical 50-mark that separates growth from contraction, indicating potential economic headwinds as reported by S&P Global. Mid-session, the pan-continental Stoxx Europe 600 Index saw an increase of 0.2%.
The Stoxx Europe 600 Technology Index fared even better, climbing 0.9%, while the Stoxx 600 Banks Index recorded a loss of 0.9%. Among other sectors, the Stoxx Europe 600 Oil and Gas Index was up 0.2%, and the Stoxx 600 Europe Food and Beverage Index edged 0.8% higher. The REITE, a European REIT index, gained 0.3%, and the Stoxx Europe 600 Retail Index also showed positive momentum, edging 0.7% higher. On national market indexes, Germany's DAX rose by 0.5%, while the FTSE 100 in London experienced a slight decline of 0.2%.
The CAC 40 in Paris was down by 0.3%, and Spain's IBEX 35 managed a modest gain of 0.2%. In the bond markets, yields on benchmark 10-year German bonds fell to near 2.16%, attracting interest from fixed-income investors looking for safer returns. Front-month North Sea Brent crude-oil futures recorded a marginal increase of 0.3%, priced at $73.90 per barrel.
Finally, the Euro Stoxx 50 volatility index noted a 2.1% uptick at 16.53, indicating below-average volatility for European stock markets in the next 30 days, a subtle but positive signal for bullish investors. Traders remain vigilant, knowing that a reading above 20 suggests choppier markets ahead, while a reading below 20 indicates calmer exchanges may be on the horizon..