European Stocks Post Best September Performance Since 2019
European stocks are expected to close September with their strongest results in six years. As of Tuesday morning London time, the Stoxx Europe 600 index was up nearly 1% for the month, although trading remained narrowly focused in the past four months. Optimism about the resilience of the US economy and the prospect of a Fed rate cut boosted investor risk appetite, although some market participants remained cautious ahead of a potential US government shutdown.
Stock sector performance was quite mixed. Financial services and media stocks performed positively, while energy and chemicals weakened. Some individual stocks experienced sharp movements, such as Asos Plc, which fell 10% due to disappointing earnings prospects, and timber stocks Stora Enso Oyj and UPM-Kymmene Oyj, which plummeted after Trump imposed new tariffs on imported wood products. Meanwhile, the Euro Stoxx 50 index is approaching its record level reached in March.
While short-term sentiment appears positive, several analysts still emphasize the risks ahead. Roland Kaloyan, head of European equity strategy at Societe Generale, estimates the Stoxx 600 could fall by around 4% to 530 points by year-end, as corporate earnings growth is predicted to be weaker than expected. On the geopolitical front, defense stocks like UBS Group AG moved slightly after US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu agreed on a 20-point plan to end the war in Gaza.
Source: Newsmaker.id
