10/23/2023 – 7:05
European stock exchanges are operating lower this Monday morning, the 23rd, extending losses from the previous three sessions, as investors remain on the defensive with geopolitical tensions linked to the crisis in the Middle East and await a series of major corporate balance sheets, in addition to interest rate decision of the European Central Bank (ECB).
At around 6:15 am (Brasília time), the pan-European Stoxx 600 index fell 0.55%, to 431.38 points.
Risk aversion continues to prevail in Europe amid the conflict between Israel and the Palestinian extremist group Hamas. Over the weekend, Israeli air strikes hit targets in the Gaza Strip, Syria and the West Bank. On the other hand, humanitarian aid convoys have begun to arrive in Gaza, which contributes to the relative stability of oil prices.
In the coming days, attention will turn to the balance sheets of European heavyweights, such as banking giants Santander and Deutsche Bank, as well as large US technology companies.
Furthermore, on Thursday (26), the ECB decides on interest rates, which have been raised continuously since July last year. At the September meeting, the euro zone monetary authority signaled a possible pause in the current monetary tightening cycle. Also on Thursday, the US releases preliminary numbers on GDP and PCE inflation for the third quarter.
Empty, this Monday’s agenda only includes preliminary research on consumer confidence in the euro zone.
At 6:31 am (Brasília time), the London Stock Exchange fell 0.55%, the Paris Stock Exchange fell 0.27% and the Frankfurt Stock Exchange fell 0.73%. Those in Milan, Madrid and Lisbon had losses of 0.14%, 0.86% and 0.43%, respectively.
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