European Stocks Little Moved On Labor Day, German DAX Mark Record Close, Natural Gas Futures Rise: What's Driving Markets Monday?

Author: Piero Cingari | September 02, 2024 03:15pm

Global markets started September cautiously, with thin trading volumes as U.S. stock markets were closed for the Labor Day holiday.

European markets closed the session marginally in the green, as traders anticipate imminent interest rate cut by the European Central Bank, The pan-European Euro Stoxx 50 index gained 0.3% for the day, closing at its highest level since mid-July. In Germany, the DAX index edged up 0.1%, setting a new record for its closing price.

Among large-cap European stocks, Sanofi (NASDAQ:SNY) led the gains with a 3.6% rise, followed by Orange (NYSE:ORAN) and Telefonica SA (NYSE:TEF), which climbed 1.7% and 1.5%, respectively.

The biggest laggards were Airbus SE (OTCPK: EADSY) , which fell 1.4%, Adidas AG (OTCPK: ADDY), down 0.9%, and both Kering SA (OTCPK: PPRUY) and BMW AG (OTCPK: BMWYY), each slipping 0.8%.

Other Markets

In the currency market, the euro rose 0.2% to 1.1070 against the dollar as of 2:00 p.m. ET: , snapping three straight sessions of declines. The British pound inched 0.1% against the greenback, while the Australian dollar rose 0.4%.

The Japanese yen was the weakest performer on Monday, dropping 0.4% against the dollar, extending the trend from last week amid a reduction expectations for an aggressive Federal Reserve rate cut.

In commodities markets, U.S. natural gas futures surged 2.8% to $2.10 per Million British Thermal Units, spurred by heightened demand for cooling. The Midwest region faced record-breaking temperatures over the weekend, prompting intense heat warnings for more than 60 million residents and driving up air conditioner usage.

Crude oil futures rose 0.5%, while gold eased 0.2% with the yellow metal falling slightly below $2,498.91.

Bitcoin (CRYPTO: BTC) rose over 2% to 58,550, after dropping 2.8% on Sunday.

Monday’s Major Company News

• The German automaker BMW is recalling its electric Mini Cooper SE vehicles due to battery issues that could potentially impact over 140,000 cars globally, according to Reuters.
• In a note released on Monday by the European Medicines Agency (EMA), Dutch pharmaceutical company Novo Nordisk A/S (NYSE:NOVO) advised healthcare professionals to continue restricting the initiation of new patients until the supply situation stabilizes. Shares of Novo Nordisk fell 1%.
• Private equity giant Blackstone Inc. (NYSE:BX) has reached an agreement to acquire an 80% stake in a European warehouse portfolio managed by landlord Burstone Resources Inc. (OTCPK: BBSRF).

Read also:

• September Market Seasonality: Why This Month Is Historically The Toughest For Investors

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