Most European stocks recorded a moderate decline after the opening, with losses around 0.5%, except for London and Milan, which bucked the trend.
Around 09:05 in Lisbon, the EuroStoxx 600 fell by 0.26% to 559.86 points.
The London and Milan stock markets were the only ones to rise, by 0.13% and 0.06%, respectively, with the former reaching historical highs above 9,300 points.
Meanwhile, Frankfurt, Paris, and Madrid markets dropped by 0.46%, 0.54%, and 0.34%, respectively, pulling back from gains after Wall Street hit record highs on Friday.
Lisbon’s stock market exacerbated its downward trend at the opening, and the main index, PSI, fell 0.76% to 7,919.50 points.
The prospect of the U.S. Federal Reserve (Fed) slashing interest rates supported positive closures for New York’s major indexes: Dow Jones Industrial rose 1.89%, Nasdaq Composite increased by 1.88%, and S&P 500 gained 1.52%.
At the Fed meeting in Jackson Hole (Wyoming) on Friday, Chairman Jerome Powell indicated potential adjustments in monetary policy, significantly raising the likelihood of a rate cut in September in the United States.
According to Renta4 Banco, Powell “highlighted that the risks to employment are on the downside and that GDP growth has slowed significantly due to weaker private consumption. Regarding prices, he reiterated that the impact of tariffs is likely to be temporary.”
The decline in European markets followed gains in Asian markets earlier that morning: Shanghai rose by 1.51%, Seoul by 1.3%, Tokyo by 0.41%, and Hong Kong advanced by 1.9%.
Investors will keep a close eye on the publication of Germany’s business confidence index for August (Ifo index) today.
The euro’s exchange rate was down approximately 0.08%, trading at 1.171 dollars, while Brent crude oil was trading at 67.82 dollars a barrel, an increase of 0.13%.
The long-term German debt interest rate was rising to 2.755%.
The troy ounce of gold was trading lower at 3,368 dollars, down 0.13%, while Bitcoin fell by 0.82%, to 111,865 dollars.
