The pan-European STOXX 600 index closed 0.6% higher, touching an over three-week high in broad-based market gains, after having notched its biggest weekly gain in three months.
Having recovered most of the recent lost ground, the benchmark index stood strong above the 500-point mark after slipping below the key level on Aug. 2.
All the major regional bourses such as Germany’s, France, Italy and Spain climbed between 0.5% and 1.4%.
Miners rose 2% tracking strength in metal prices, while online fashion marketplace Zalando and British sportswear retailer JD Sports led the charge among retail stocks. Meanwhile, defence stocks fell after a report that the German finance ministry would not approve additional applications for Ukraine military aid due to budget constraints. Hensoldt, Renk, BAE Systems, Saab, Thales and Leonardo were down between 0.8% and 5.4%. “The consolidation phase is going to last for the next few days… It’s at that point where indecision creeps in again. It’s now back to assessing what’s out there and how these factors can impact,” said Daniela Hathorn, senior market analyst at Capital.com. Investors are now gearing up for another week brimming with crucial economic data including euro zone inflation and PMI numbers, alongside the U.S. PMI numbers and weekly jobless claims.
However, the main focus this week is the global central bank gathering at Jackson Hole, Wyoming, where Fed Chair Powell is expected to speak on Friday and likely give some clues on the Fed’s monetary policy path.
Minutes of the Fed’s July policy meeting is also due on Wednesday.
“The easiest thing for Powell would be to repeat his message from July. An evolution of the July FOMC language would suggest the committee is ‘very close’ or ‘close’ to the point where easing is likely to occur,” Bank of America analysts said.
Among others, Finnish mining equipment maker Metso pared gains, albeit closing 3.7% higher, after clarifying it has no ongoing plans for a tie-up with the rival mining equipment business unit of Sweden’s Sandvik following a news report.
UK homebuilder Barratt and Redrow rose 3.4% and 4.5%, respectively, after a condition by the competition regulator for the former’s acquisition of its smaller rival was waived to satisfy a legal completion this week
