European equity markets moved higher on Monday as traders prepared for a week filled with key economic reports and the possibility of a U.S. federal government shutdown.
By 08:00 GMT, the pan-European Stoxx 600 had risen 0.3%, Germany’s Dax and France’s CAC 40 each gained 0.1%, while the U.K.’s FTSE 100 climbed 0.5%.
Shares of Britain’s GSK (LSE:GSK) jumped more than 3%, lifting the broader health care sector, following the announcement that CEO Emma Walmsley will step down. Walmsley is set to be replaced by Luke Miels in January. AstraZeneca (LSE:AZN) also saw its stock rise after the company confirmed it will maintain its London listing and headquarters while listing shares directly on the New York Stock Exchange rather than through depositary receipts.
Technology and industrial goods sectors were among the best performers during Monday’s session.
Market attention is now turning to the release of September’s nonfarm payrolls report on Friday, which could offer insight into the U.S. labor market. Policymakers at the Federal Reserve have emphasized the importance of a cooling employment picture, noting that recent rate cuts of 25 basis points prioritized slowing employment over persistent inflation. Fed projections indicate that several members anticipate additional rate reductions before year-end, as lower rates can encourage investment and hiring, though they carry the risk of pushing prices higher.
Economists expect 51,000 new jobs in September, up from 22,000 in August, with the unemployment rate forecast to remain at 4.3%. Analysts suggest that strong payroll data could influence the Fed to adopt a more gradual approach to further rate cuts.
Concerns remain that a potential U.S. government shutdown this week could delay the publication of the jobs report. Congress faces a deadline to approve a stopgap funding bill before the fiscal year ends Tuesday. If a deal is not reached, the federal government would enter its 15th partial shutdown since 1981. While Republicans control both chambers, some Democratic votes are needed to pass the legislation. Democrats have rejected short-term proposals, demanding that any bill reverse Republican cuts to health care programs. Lawmakers from both parties are scheduled to meet President Donald Trump on Monday. Speaking to Reuters over the weekend, Trump said he has “the impression” that Democrats may want to reach an agreement.
Gold Hits Record High
Gold surged above $3,800 per ounce, driven by safe-haven demand amid government shutdown concerns and expectations that the Fed will continue cutting interest rates. By 04:13 ET, spot gold was up 1.5% at $3,814.91/oz, while futures rose 0.9% to $3,844.50/oz.
Meanwhile, oil prices eased, pressured by the resumption of crude exports from Iraq’s Kurdistan region via Turkey after a 2½-year halt and plans for additional OPEC+ production increases in November. Brent crude futures fell 1.1% to $68.46 a barrel by 04:08 ET, and West Texas Intermediate crude declined 1.3% to $64.87 per barrel.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply