Rise of European Stock Exchanges: Investors are Watching Central Banks

European Stock Markets Start the Week Positively

European stock markets display a green outlook in the first trading day of the week, providing hope to investors. As of 11:50 AM, the Stoxx Europe 600 benchmark index is trading at 581.6 points, up by 0.6%, while the Germany DAX 40 index has risen by 0.3% to 24,282 points. Other significant stock indices have also recorded notable 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 8,127 points. The FTSE MIB 30 index in Italy has risen by 1% to 43,927 points, and Spain's IBEX 35 index has also gained 1%, reaching 17,019 points.

Central Banks' Monetary Policy Expectations

Investors' 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, it is likely that the ECB will keep interest rates unchanged.

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

Interest Rate Hike Expectations in Japan

On the other hand, the Bank of Japan (BoJ) is widely expected to raise interest rates in its upcoming meeting. Analysts emphasize that the news flow regarding the monetary policies of major central banks will be closely monitored, especially in light of the geopolitical developments in the region.

Economic Data to be Closely Monitored

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