Wall Street, European markets stabilize as investors await key economic data
Date
8/28/2024 5:03:51 AM
(MENAFN) On Tuesday, Wall Street's major indices experienced little movement, with a cautious sentiment dominating the market ahead of crucial economic data expected later this week. The Dow Jones Industrial Average inched up by 54.24 points, or 0.13 percent, while the S&P 500 gained 13.95 points, or 0.25 percent. The nasdaq Composite index also rose, adding 70.24 points, or 0.40 percent. Investors are attempting to find stability after a challenging start to the month, marked by volatility. However, there is a growing sense of optimism following comments from Federal Reserve Chairman Jerome Powell, who indicated on Friday that the central bank's next move would likely be to lower benchmark interest rates. While Powell did not specify the timing or magnitude of any rate cuts, the hint of potential easing has sparked some positive sentiment in the market.
Across the Atlantic, European shares managed to climb after a weaker performance in the previous session, driven largely by gains in major mining companies. The pan-European STOXX 600 index rose 0.30 percent to 519.33 points, with Germany's DAX edging up 0.24 percent, Britain's FTSE advancing 0.70 percent, and France's CAC 40 increasing by 0.32 percent. Nevertheless, caution prevailed as investors awaited significant economic data from Germany and Spain, as well as inflation figures from the European Union set to be released on Friday. These data points are expected to provide crucial insights into the European Central Bank's future monetary policy direction. Earlier in the day, Germany's DAX opened flat following detailed GDP data that showed the German economy contracted by 0.1 percent in the second quarter of 2024, while Sweden's index remained unchanged at 2,566.69 points after producer prices fell by 1.4 percent in July.
The raw materials sector stood out in Europe, outperforming all other sectors with a gain of over 1 percent. This surge was propelled by a rise in copper prices to their highest levels in nearly six weeks, fueled by optimism surrounding a potential interest rate cut in the United States. As both Wall Street and European markets navigate the current climate of caution and optimism, the upcoming economic data releases are set to play a pivotal role in shaping investor sentiment and the trajectory of global financial markets.
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