European stocks are rising. Oil is rising. The dollar slows down and gives strength to the euro and gold – markets in a minute

European stocks gain bet on lower US inflation

European stocks closed higher, as investors bet that US inflation eased in August.

US CPI data will be released tomorrow. In Europe, Germany and Spain are also presenting their final CPI figures for August.

This was the old continent’s benchmark third session high, spurred by expectations that cooling inflation could prompt the US Federal Reserve and other central banks to slow the pace of monetary tightening.

The Stoxx 600 index closed up 1.76% to 427.75 points. All sectors of the European benchmark index rose, with a particular focus on retail trade, banking and automobiles.

Among the major indices in Western Europe, Germany’s Dax rose 2.40%, France’s CAC-40 rose 1.95%, Italy’s FTSEMIB rose 2.33%, Britain’s FTSE 100 rose 1.66% and Spain’s IBEX 35 jumped 2.01% . In Amsterdam, the AEX index recorded an increase of 1.59%.

Pierre Verrett, Technical Analyst at ActivTrades, notes in his daily report that “European stocks rebounded at the start of this new week, extending gains made during the Asian evening session as risk appetite continues to grow globally.”

“Most indicators set fresh short-term lows after breaking several intermediate resistance levels last week, and are now heading towards fresh monthly tops as the bullish correction of the heavy selling continues in late August.”

“It is interesting to note here that riskier assets continue to rise while the euro is also recovering,” Verett adds. “This is very unusual given the fact that the more expensive euro would normally put pressure on the large export groups in the Stoxx 600 and Stoxx 50 indices, but that’s not what we’re seeing happen.”

“European indices appear to be being pushed higher by improving global sentiment, while traders also took the opportunity to buy in the event of a possible dip in the European currency, after the start of the ECB rate-raising cycle this week.” .

However, “traders are also preparing for sensitive macro data such as US CPI tomorrow, UK CPI on Wednesday, and EU CPI on Friday, which are likely to bring more volatility into the markets,” he notes.