European Shares Rise as Investors Eye Economic Data and U.S. Tech Earnings

European shares opened on a rise on 28th October 2024, with the pan-European STOXX 600 performance rising by 0.4% to 520.84 points. According to Reuters, this came as a surprise to the investors as they geared up for a week of important economic data and earnings reports from major U.S. companies.

Sector Highlights and Notable Movements in the European Shares

• Energy Sector: The energy sector saw a 2% decline after a 5% dip in oil prices which was impacted by the rising geopolitical tensions between Iran and Israel. Concerns over global energy supply and potential disruptions added to the volatility in oil prices, directly impacting European energy stocks.
• Travel and Leisure: The travel and leisure sector including airlines stocks saw a gain of 1%. With the reduced operational costs due to falling fuel prices the profit margins for the airlines are deemed to go up.
• Luxury Goods: Luxury stocks rose by more than 1.3%, adding to market confidence, as strong earnings reports from key players in the sector.

However, the Dutch medical equipment company Philips saw a sharp decline, with shares dropping by 16.7% after it projected its annual sales forecast downward.

Anticipated Economic Data and U.S. Tech Earnings

European markets are gearing up for a series of significant economic reports, including:

• Eurozone: Preliminary GDP figures, consumer confidence indicators, and economic sentiment reports, expected this week, will provide insights into regional economic health and growth potential amid recent inflationary trends and central bank policy changes.
• Germany: Germany will release data on consumer prices, flash GDP estimates, and employment figures, giving investors a comprehensive view of the country’s economic stability and performance.

Moreover, Spain’s estimated GDP, Italy’s preliminary GDP and British’s budget are all due on Wednesday, 30th October 2024.

Additionally, U.S. tech giants Alphabet, Microsoft, Meta, Apple, and Amazon are set to announce their earnings this week, with results that are likely to impact global market sentiment due to the significant influence these companies hold on the economy.

With the U.S. Presidential election also around the corner, markets are getting ready for any potential policy shifts or trade implications tied to the outcome, which could further impact global markets.

In a mixed but cautiously optimistic market landscape, European shares are showing resilience, driven by positive corporate earnings and expectations of continued economic recovery, even as they remain sensitive to global events and data trends.