European markets rise after uncertain start, investors reassess economic outlook.
European markets closed higher on Monday after starting the trading week on an uncertain note. Investors reassessed the economic outlook as the Federal Reserve is getting ready to slow the pace of its inflation-fighting rate hikes. This follows economic data last week that showed a decline in wholesale prices and retail sales. On Friday, Fed Gov. Christopher Waller said he favors just a quarter-point hike on February 1.
Kristalina Georgieva, managing director of the IMF, said Friday at the World Economic Forum that the global economic outlook is not as bad as feared a couple of months ago, but cautioned for caution. Asian markets were higher overnight, but most markets in the region are closed for the Lunar New Year holiday.
The Dow opened higher Monday as investors weighed a potential slowdown from the Federal Reserve and braced for a busy earnings week. The pan-European Stoxx 600 provisionally closed 0.6% higher, with tech stocks adding 2.3% while chemicals slid 0.5%. The uncertain economic outlook has caused investors to reassess the rate of inflation-fighting rate hikes.
The Federal Reserve is looking to slow the pace of its rate hikes, with Fed Gov. Christopher Waller favoring a quarter-point hike on February 1. Kristalina Georgieva, managing director of the IMF, said that the global economic outlook is not as bad as feared a couple of months ago, but warned for caution. The Dow opened higher Monday in light of the potential slowdown, while European markets closed higher despite an uncertain start to the week.
Asian markets were higher overnight, but most markets in the region are closed for the Lunar New Year holiday. The pan-European Stoxx 600 provisionally closed 0.6% higher, with tech stocks adding 2.3% while chemicals slid 0.5%. Investors are reassessing the economic outlook as the Federal Reserve looks to slow the pace of its inflation-fighting rate hikes.
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