“European stocks defy recent market turbulence by bouncing back from a 10-month low, offering a glimmer of hope amidst global economic uncertainties, while the declining oil prices add an intriguing twist to the market dynamics.”
Stocks rose on Monday as Europe’s Stoxx 600 rebounded from a 10-month low. Oil prices also retreated as Israel’s military action in Gaza proceeded more cautiously than expected. Treasuries, on the other hand, fell. The Israeli military has started its operations slowly, and there are few signs that the conflict will spread across the wider Middle East region. This news has provided relief to investors, prompting them to re-enter the markets after last week’s sharp selloff. The week ahead also includes several market-moving events, such as central bank meetings and the US Treasury Department’s quarterly bond sales plan. Bond yields remain high despite the Israel-Hamas war, which typically drives up demand for Treasuries as a safe haven. In terms of individual stocks, HSBC Holdings Plc remained steady after a share buyback announcement. Moving forward, Wednesday’s Treasury Department bond sales announcement is expected to be a significant market event. Some upcoming key events this week include Japan’s unemployment and industrial production data, the Bank of Japan rate decision, and the Federal Reserve rate decision.