Economic Uncertainty Could Weigh on European Stock Markets’ Rebound

Wael Makarem, Senior Market Strategist – MENA at Exness. Please don’t hesitate to get in touch if you require any further information.

European stock markets were slightly positive today and remained on a slight uptrend throughout this week, extending gains for more than a month. Investors could continue to monitor comments from ECB members as well as economic data for clues on the direction of monetary policy and economic conditions. ECB President Lagarde’s comments hinted at a possible end of interest rate hikes, while other ECB members emphasized the necessity to avoid early rate cuts. Additionally, a slight improvement in German business confidence contributed to maintaining today’s performance after lower-than-expected GDP figures. However, the ECB might be compelled to cut its rates if economic conditions deteriorate further.