European Shares Bounce on Easing Fed Hike Expectations
European shares rose on Monday as investors benefited from easing expectations of a Federal Reserve rate hike and stronger-than-expected economic data. The pan-European STOXX 600 index was up 0.1% at 658.51 points by 0823 GMT.
The basic resources sector led the gains, with stocks like Antofagasta, Hochschild Mining, and Fresnillo increasing between 1.9% and 2.3%. Gold prices also rose 0.4% after softer-than-expected U.S. economic data and a weaker dollar.
Technology stocks added to the gains, with a 1% increase. Goldman Sachs had raised its 12-month target for the STOXX 600 on Friday, forecasting it to reach 695 points from 660 previously, implying about 5.5% upside from current levels, citing resilient economic growth and strong corporate earnings.
Investors are now focusing on macroeconomic and geopolitical developments as the European earnings season comes to a close. Andrea Cicione, head of research at TS Lombard, noted that there's a divergence between Europe and the U.S., with U.S. data softening while European data remains relatively strong.