European Stock Set to End September Lower

European stocks traded higher on Wednesday, with the STOXX 50 up 0.5% at three-week highs and the STOXX 600 gaining 0.7%, as most sectors advanced. Utilities and mining stocks led the gains, while the energy sector fell into negative territory. ASML (0.8%), Novartis (1.1%), Airbus (1.3%) and Safran (1.2%) all gained, while TotalEnergies shares fell 1%. Despite Wednesday’s gains on the final trading day of September, the STOXX 50 is down 1.5% for the month, while the STOXX 600 has fallen 2%, the first decline in six months. Energy prices have risen again this month amid a lack of progress in negotiations between the US and Iran, adding to inflationary pressures and reinforcing expectations of tighter monetary policy. Considering Q3, the STOXX 50 is little changed while the STOXX 600 is down 0.6%.

European equity markets were poised for a stronger open on Wednesday as falling oil prices and stabilizing bond yields improved investor sentiment. Oil prices were down so far this week after Saudi Arabia restored around half the capacity of its East-West pipeline, while the Trump administration ordered another release of emergency reserves. Global bond yields had climbed to multi-year highs as elevated energy costs raised concerns over renewed inflation, although the bond selloff showed signs of easing. In Europe, investors will assess inflation data from Germany, France and Italy, along with UK GDP and German unemployment figures. In corporate news, Glencore received approval with Yancoal Australia for a major expansion of their jointly owned coal mines in the Hunter Valley region of eastern Australia. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.6%.

European equities edged up on Tuesday as easing crude prices reduced some of the pressure on inflation and markets became less concerned about an imminent ECB rate increase. The Stoxx 50 gained 0.4%, while the Stoxx 600 was little changed, with technology stocks providing much of the momentum. ASML was a standout performer, jumping 4%. Energy companies instead weakened as Brent crude slipped toward $104 a barrel following the restart of Saudi Arabia’s key oil-export pipeline. In Switzerland, Julius Baer surged 7% after Finma closed its enforcement proceedings, clearing the way for the bank to seek approval to restart its share-buyback programme. Lindt & Sprüngli dropped 8.4% after lowering its sales-growth outlook for the second time this year.