Categories: Economic News

Traders evaluate earnings, economic data

LONDON — European markets closed higher on Monday as investors continued to monitor business earnings and key economic data points, assessing the risk of recession.

“Just as Erwin Schrödinger’s cat was alive and dead at the same time, the global economy may be in recession and not, at least not yet.”

James Pomeroy

Global Economist, HSBC

Turning to data in Europe, the Sentix economic sentiment index for the euro zone in August rose a fraction from the previous month, but still pointed to a high likelihood of a recession in the common currency bloc of 19 members.

“Just as Erwin Schrödinger’s cat was both alive and dead at the same time, the global economy may be in recession and not, at least not yet,” said HSBC global economist James Pomeroy.

“Over the past month, the mixed signals have not become clearer, with a second quarterly contraction in US GDP at odds with firmer monthly data, upside surprises for GDP data in Europe and a series of communications suggesting that consumers continue to spend despite their impaired vision.”

Corporate earnings continued to drive individual share price movement in Europe, with Siemens Energy, Porsche and BioNTech among the companies reporting before the bell on Monday.

British financial services firm Hargreaves Lansdown gained more than 7% to lead the Stoxx 600 after Deutsche Bank raised its price target for the stock.

At the bottom of the index, British media company Future fell 5%.

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