European investors take shelter ahead of central bank week

Frankfurt, December 05 – Investors in Europe are largely holding back ahead of the final central bank meetings of this year. Germany’s leading Dax index fell 0.4% to 14,468 points on Monday morning. Its European counterpart EuroStoxx50 was down 0.1% to 3972 points. Even the mixed economic data, including the sharp drop in retail sales in the Eurozone, provided little impetus.

“When you look at this week’s data calendar, that wait could go on forever,” said portfolio manager Thomas Altmann of investment adviser QC Partners. “The very big impulses will probably only come from central bank meetings in the coming week, so it will be interesting to see if there will be further profit taking this close to the end of the year.” Next week, the US Federal Reserve, European Central Bank and Bank of England will decide their interest rates in the fight against high inflation.

OIL AFTER OPEC MEETING AND STARTING THE GUN FOR THE MORE PRICE CEILING

North Sea oil prices BrentLCOc1 and the US variety WTI each rose 1.8% to $87.2 and $81.43 a barrel (159 liters). The states of the oil association Opec+ decided on Sunday to maintain the production volumes which had been reduced until the end of 2023. “The oil cartel reacts to the uncertainty caused by the cap on Russian oil prices by the Union European.

The EU is forming a demand cartel, at least against one OPEC+ member: Russia,” said Konstantin Oldenburger, market analyst at online broker CMC Markets. Russia’s reaction is open. The possibilities of reprisals from the Muscovite leaders remain limited, however, since the major part of Russian oil is already sold to Asia and no longer to Europe.

Austrian energy expert Walter Boltz expects the EU oil embargo against Russia to push prices up to 20% for a few weeks. The further easing of the strict corona policy in China, which has fueled speculation of increased demand in the People’s Republic, is also having an effect on prices.

FLATEXDEGIRO AT THE LOWEST IN THREE YEARS – CREDIT SUISSE RECOVERS

In terms of individual stocks, FlatexDegiro’s share fell 28.7%. The online brokerage announced over the weekend a restructuring of the board and risk management as financial regulator Bafin identified shortcomings in business practices and corporate governance. In addition, four weeks from the end of the year, the group is lowering its forecasts for the current year for the second time.

Shares of troubled Swiss bank Credit Suisse rose 7.5%. According to a news report, the Saudi crown prince, a former Barclays CEO’s private equity firm and other investors are keen to invest in Credit Suisse’s new investment banking division.

European investors take shelter ahead of central bank week

Source: Reuters

Symbolic photo: Image by StartupStockPhotos on Pixabay

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