Europe open: Markets pause at four-month high on quiet day
European stock markets opened mixed on Monday, struggling for direction on a quiet day as the Stoxx 600 paused at a four-month high.
The Stoxx 600 was more or less flat after closing last week at 466.20, its highest finish since the start of August. Stocks in London were in the red early on, flat in Paris and Milan, but rising in Frankfurt and Madrid.
Stephen Innes, managing partner at SPI Asset Management, said investors were treading cautiously ahead of some important data due out later in the week.
"A slow Monday start as traders prepare for a slew of actionable US economic data scheduled for release this week, poised to be crucial in refining traders' expectations regarding Federal Reserve policy. The insights garnered from this data may prove pivotal for the upcoming refresh of the dot plot later in the month," Innes said.
The non-farm payrolls report, expected on Friday, is forecast to show 180,000 jobs created in November, up from 150,000 in October, with a particular focus to be put on potential revisions to earlier estimates.
Innes said that an exceptionally strong jobs report and unexpected pick-up in inflation – with new CPI figures scheduled next week – could "entertain the possibility of a rate hike during the last FOMC meeting of 2023".
Closer to home, the only major economic release of Monday were German trade figures, which showed that the trade surplus widened more than expected in October. The trade balance stood at €17.8bn, up fro €16.7bn in September and ahead of the €17.0bn forecast, as imports fell 1.2% and exports declined just 0.2%.
Broker upgrades lift London blue chips
London's FTSE 100 was trading in the red, on the back of weakness in the mining and energy sectors, with Rio Tinto, Anglo American, Glencore, BP and Shell all trading firmly lower.
However, Rolls-Royce and DS Smith were leading the risers on the back of broker upgrades. Rolls-Royce and DS Smith were raised to 'overweight' by JP Morgan and Barclays, respectively,
888 Holdings was another high riser, jumping 13% after reportedly rejecting a £700m takeover approach by Playtech.
Leading the upside on the Stoxx 600 were Alsria Office REIT, Sinch and Delivery Hero.