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European stocks subdued ahead of central bank speakers; Ryanair shines

Published 06/11/2023, 08:14
Updated 06/11/2023, 09:52
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Investing.com - European stock markets traded in a subdued fashion Monday, consolidating after last week’s strength as investors looked to central bank speakers for guidance.

At 03:45 ET (08:45 GMT), the DAX index in Germany traded 0.1% lower, the CAC 40 in France traded largely flat and the FTSE 100 in the U.K. fell 0.1%.

Central bank speakers in focus

European equities posted strong gains last week, powered by a series of solid earnings and a perceived dovish tilt from central banks in the wake of several policy-setting meetings.

Trading has been muted at the start of the new week, with investors awaiting a host of ECB speakers this week, including President Christine Lagarde on Friday, in the search for clues pver the future of monetary policy.

Futures are currently implying an 80% probability the central bank will begin easing as soon as April as the region heads towards a recession.

There are also at least nine Fed speakers due this week, including two appearances by Chair Jerome Powell - the second of which on Thursday includes a Q&A session. 

Ryanair forecasts a record annual profit

In corporate news, Ryanair (IR:RYA) stock rose almost 6% after Europe’s largest airline by passenger numbers forecast a record annual profit and promised to pay investors a regular dividend for the first time after fares soared during its key summer season.

The carrier said traffic was up 11% to 105 million in the six months to the end of September, with fares 24% higher than last year.

Telecom Italia (BIT:TLIT) stock fell 1.6% after approving the sale of its fixed-line network to U.S. private equity firm KKR.

Melrose Industries (LON:MRON) stock rose 3.6%, after the British aerospace supplier said its unit GKN (LON:GKN) Aerospace Engines business has signed agreement with GE Aerospace expanding a long-term partnership.

German factory orders rose in September

Turning to economic data, German factory orders rose 0.2% on the month in September, a stronger result than the fall of 1.0% expected, but still a sharp drop from the revised 1.9% gain seen in August.

There are a number of PMI releases due throughout Europe Monday, which should provide indications of the strength of economic activity in the region last month.

Crude rises on prospect of tighter supply

Oil prices rose Monday, rebounding after last week’s hefty losses, with traders encouraged by the prospect of tighter supplies, while keeping an eye on events in the Middle East.

Major suppliers Saudi Arabia and Russia confirmed over the weekend that they will maintain their ongoing supply reductions until the end of the year, heralding tighter oil markets.

By 03:45 ET, the U.S. crude futures traded 1.5% higher at $81.72 a barrel, while the Brent contract climbed 1.4% to $86.06 a barrel. 

Both benchmarks slumped about 6% last week as the geopolitical risk premium faded, with the Israel-Hamas war failing, so far, to escalate into a wider conflict in the Middle East.

Additionally, gold futures fell 0.3% to $1,992.80/oz, while EUR/USD traded 0.2% higher at 1.0748.

 

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