The European stock markets concluded Tuesday's trading session on a positive note, with the Stoxx Europe 600 rising by 0.58%. Notable increases included the Swiss Market Index, which climbed by 0.70%, France's CAC which increased by 1.28%, the FTSE in London gaining 0.28%, and Germany's DAX advancing by 0.75%.
However, the business outlook in Germany presented a concerning trend, declining for the fourth consecutive month, as evidenced by the ifo Business Climate Index, which fell to 85.4 points in September from 86.6 points in August. The survey indicated that German companies reported decreased satisfaction with the current business situation, emphasizing that "the German economy is coming under ever-increasing pressure." In the United Kingdom, the median household disposable income experienced a notable decline of 2.5%, settling at 34,500 British pounds ($46,100) in 2023 compared to the previous year.
This data comes from the Office for National Statistics' Household Finances Survey, signaling economic strain on households. In corporate news, mining stocks and luxury goods stocks enjoyed significant gains during Tuesday's trading as China's central bank announced an interest rate cut and unveiled a stimulus package to bolster the economy.
Mining companies such as Antofagasta and Anglo America saw impressive rises of 6.6% and 6.3% in London, respectively. This surge was accompanied by Rio Tinto and Glencore, which increased by 4.6% and 3.9%, respectively, while ArcelorMittal closed with a 5% gain in Paris. Additionally, HSBC, a prominent UK financial services company, faced allegations from the US think tank C4ADS, claiming that it inadvertently facilitated the mining operations of the private military company Wagner in Africa.
In response, HSBC stated that it is "deeply committed to combatting financial crime and to the integrity of the global financial system," asserting their significant investments in building and maintaining an effective control framework to mitigate such risks. Furthermore, British pharmaceutical giant GSK announced on Tuesday that the European Medicine Agency's Committee for Medicinal Products for Human Use has recommended the approval of a single-vial, fully liquid presentation of the Menveo vaccine, designed to combat invasive meningococcal disease.
This development marks a significant step in public health advancements..