Major stock markets in Europe ended higher on Monday (24), due to improved risk appetite in global markets. The recovery in the technology sector in the United States and other countries is supporting European indices, which are also benefiting from the increasing possibility of an interest rate cut by the Federal Reserve in December. Investors are also following developments in peace negotiations between Ukraine and Russia.
The European Stoxx 600 index closed up by 0.31% to 563.83 points. The technology sector gained 1.35%, highlighted by shares of ASML (+3.39%).
In London, the FTSE 100 index rose 0.14% to 9,553.21 points. The DAX index in Frankfurt gained 0.70% to 23,253.10 points. The Paris CAC 40 index closed up 0.10% to 7,990.56 points.
The United States and Ukraine are still discussing the structure of the peace agreement that will be transferred to the Kremlin. The two sides drafted a “revised” version of the proposal during negotiations in Geneva, Switzerland, after criticism that the original proposal was in favor of Moscow.
For IG’s Chris Beauchamp, European markets reflect the improvement in sentiment on global stock exchanges, given the more dovish statement made by New York Fed President John Williams in the last session, which suggests he still sees room for further short-term interest rate cuts. “The recovery represents a significant shift from last week’s volatility, although investors remain cautious about its sustainability,” he warns.