European stock performance for the new week .. Optimism that controls markets with strong performance expectations

European markets are awaiting a week full of economic and political developments, amid possible fluctuations in the performance of stocks due to a group of influential factors, including central bank decisions, economic data, and global trade tensions.

As the markets enter a new stage of uncertainty, it seems that investors will rely on caution in making their investment decisions next week.

Market performance in the last sessions

European shares ended trading last week on a variation, as technology and health care shares have made slight gains while banks and energy shares declined as a result of oil prices fluctuations and anticipation of interest decisions, and morale is still affected by external factors, such as the slowdown in the German economy, and the performance of the British economy that is still suffering from the repercussions of high inflation.

The most prominent factors affecting the new week

Central bank decisions and interest trends

Central bank policies, especially the European Central Bank (ECB), remains one of the most important engines for markets, and investors await any references to the possibility of reducing monetary policy or maintaining high interest rates for a longer period, and if the European Central Bank shows more flexibility towards reducing interest in the future, this may lead to the recovery of shares, especially in the real estate and technology sectors, and in contrast, any strict statements regarding the continued tightening of the policy Cash may pressure the markets, which may push investors towards safe havens such as bonds and gold.

The upcoming economic data

European markets are awaiting a set of important economic data, which may directly affect investor decisions, most notably:

Purchasing managers (PMI): It will reflect the health of the economy in the manufacturing and services sectors, as any weakness in these data may lead to extensive sales of shares.

Euro -area inflation rates: Any decline in inflation may support the rates of reducing interest later, which enhances stock markets.

Labor and wage market data: It will affect investor morale on economic growth and consumer companies.

Main sectors movements

The banking sector: It may remain under pressure amid fears of the high costs of lending and their impact on bank profits.

Technology Sector: It is expected to be more stable, taking advantage of expectations for inflation and flexible monetary support.

Energy Sector: Strong fluctuations may be witnessed due to the developments of global oil prices, especially with continued geopolitical tensions.

Tensions

Commercial conflicts, especially after the United States imposed customs duties on some European products, may affect investor morale, especially in sectors such as cars and manufacturing.

General expectations for the new week

The new week is expected to witness noticeable fluctuations, as the market will start with caution waiting for important economic data, and if positive indicators are issued on inflation or the European Central Bank shows flexibility in its policies, the markets may rise gradually. But if the data comes disappointing, we may witness a wave of declines, especially in the sensitive sectors of demand such as retail and heavy industries.