European stocks higher; economic outlook, monetary policies in spotlight
Investing.com — European stock markets edged higher Monday, helped by the positive close on Wall Street last week but investors continue to fret about the global growth outlook amid restrictive monetary policies.
At 04:10 ET (09:10 GMT), the DAX index in Germany traded 0.5% higher, the CAC 40 in France traded up 0.7% and the FTSE 100 in the U.K. climbed 0.7%.
European stocks have started the new week on a positive note, following on from the big gains on Wall Street on Friday, boosted by heavyweight tech and growth stocks as Treasury yields calmed.
However, these gains look tentative as the economic outlook for the eurozone deteriorated last week, suggesting there is a growing chance of a recession either late this year or early next.
This view hasn’t been helped by weakness in China, the world’s second largest economy and a major export market for a number of Europe’s major companies.
Data showed China's Singles Day shopping fiesta over the weekend — equivalent to Black Friday sales in the U.S. — recorded only meagre growth, indicating that the country’s consumers still lack confidence.
Investors will be keeping an eye on this week’s U.S.-Sino Presidential meeting, looking for a thawing in the relationship between the two largest economies in the world.
Investors also remained concerned about the potential for global central banks to keep interest rates higher for longer as they attempt to combat inflation.
European Central Bank President Christine Lagarde last week said that rates will stay restrictive at least for several quarters, and her deputy Luis de Guindos is scheduled to speak later today, giving the keynote speech to kick off Euro Finance Week.
Also last week, Federal Reserve Chair Jerome Powell said
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