European Stock Exchanges on the Rise: Investors are Monitoring Central Banks

European Stock Markets Start the Week Positively

European stock markets are showing a green outlook on the first trading day of the week, giving investors hope. As of 11:50 AM, the Stoxx Europe 600 benchmark index is trading at 581.6 points, up by 0.6%, while the German DAX 40 index has risen by 0.3% to reach 24,282 points. Other major stock indices have also recorded significant gains.

Stock Market Outlook by Country

The FTSE 100 index in the UK is trading at 9,709 points, up by 0.6%, while France's CAC 40 index has increased by 0.7% to reach 8,127 points. Italy's FTSE MIB 30 index has gained 1% to 43,927 points, and Spain's IBEX 35 index has also risen by 1% to 17,019 points.

Central Banks' Monetary Policy Expectations

Investor attention is focused on the monetary policy decisions to be announced by major central banks this week. The European Central Bank (ECB) has announced that it will test 110 banks in the Eurozone against geopolitical shocks in 2024. Additionally, the ECB is likely to maintain its interest rates at current levels.

The Bank of England (BoE) is expected to cut its policy rate by 25 basis points to 3.75% following the decline in annual inflation from 3.8% to 3.6% in October. Market expectations suggest that the policy rate could decrease to 3.25% by 2024.

Interest Rate Hike Expectations in Japan

Meanwhile, a rate hike by the Bank of Japan (BoJ) is highly anticipated at this week's meeting. Analysts emphasize that geopolitical developments in the region will lead to close monitoring of upcoming news regarding the monetary policies of major central banks.

Economic Data to be Closely Monitored

Additionally, macroeconomic data to be released during the day, such as the Eurozone's industrial production for October and the New York Fed manufacturing index, are also on investors' agenda.