European stocks up with focus on Fed Powell’s speech

European stock markets rose today, Wednesday, tracking the impact of their Asian counterparts, despite the continuation of caution after disappointing data on factory activity in China, and while investors await the speech of Jerome Powell, Chairman of the Federal Reserve (the US Central Bank) for indications on the stance of monetary policy.

According to “Reuters”, stocks achieved widespread gains that pushed the European Stoxx 600 index up 0.3 percent by 0825 GMT, on its way to ending a three-day losing streak. The index increased by about 6.4 percent in November, heading for gains for the second month in a row.

The shares of luxury products companies were among the biggest supporters of the index during the day, followed by the shares of technology and energy companies

Mining stocks, however, underperformed, falling 0.5 percent, as iron ore and copper prices fell on concerns about demand, after data showed activity in China’s manufacturing and service sectors fell in November to its lowest level in seven months under the weight of COVID-19 restrictions.

Rio Tinto shares fell 0.7 percent. The company said that its shipments of iron ore in 2023 will be in the same range expected for the current year, but costs will rise.

Investors are also awaiting Eurozone inflation data, which is expected to show a year-on-year decline in November.