European Stocks to Open Higher.
London, Monday, 19 December 2022
As investors welcomed Germany's IFO Business Climate data showing there was a third consecutive monthly improvement in business morale during December, European stock markets traded slightly higher on Monday, with the pan-European STOXX 600 edging up 0.4% from Friday's one-month low and Germany's DAX 40 adding 0.4% at 13,950.
While inflation remained high and major central banks provided a more hawkish stance on monetary policy than investors had anticipated, worries that the global economy may enter a severe recession next year continued to weigh on general morale.
The European Central Bank raised interest rates by 50 basis points last week and predicted that they would need to rise "substantially at a steady pace" going forward.
The Federal Reserve has likewise increased rates by 50 basis points while indicating that it is far from finished. In addition, information on the construction production, labour costs, and pay increases in the Eurozone will be released.
(Report by: The Decision Maker - Finance editors)