European markets in positive territory, Saab gains 6% following Colombia jet deal
Pedestrians shelter from the rain under umbrellas as they pass the Elizabeth Tower, commonly known by the name of the clock’s bell, “Big Ben”, at the Palace of Westminster, home to the Houses of Parliament, in London on February 22, 2024.
Henry Nicholls | AFP | Getty Images
LONDON — European stocks started the new trading week on a cautiously optimistic note Monday.
The pan-European Stoxx 600 was up 0.06% at 8:25 a.m. in London (3:25 a.m. ET), with most major bourses in the green.
Saab was one of the strong early gainers on Monday after the Swedish aerospace and defense name announced on Friday a $3.6 billion deal to supply Colombia’s government with 17 Gripen fighter jets over the next five years. Saab’s share price was up more than 6% on Monday morning.
Shares in Airbus rose 1.14%% in early trade amid reports that the European aircraft manufacturer was close to securing a deal to supply almost 100 planes to flydubai at the Dubai Airshow, beating rival Boeing to take the bulk of the budget carrier’s jet order.
Meanwhile, WPP advanced almost 5.2% following a report that the U.K. advertising agency is drawing takeover interest from private equity giants Apollo Global Management and KKR and smaller peer Havas.
Monday’s market caution among regional stocks follows a troubled week for European markets last week, with regional bourses closing sharply lower on Friday as concerns about an artificial intelligence bubble and the global economy shook investor confidence.
Meanwhile, comments from U.S. Federal Reserve officials in recent weeks have also prompted investors to reconsider the likelihood of a December rate cut. On Monday, markets are pricing in a 56.1% chance that the Fed stands pat on rates at its next meeting, according to CME Group’s FedWatch tool. A month ago, the market had assigned a 95% probability to an end of year cut.
Stateside overnight, stock futures were little changed following a choppy week in which valuation fears, a rotation within the market and a recalibration of Federal Reserve rate cut expectations pressured the artificial intelligence trade.
Meanwhile, Asia-Pacific markets traded mixed on overnight as investors assessed rising friction between Japan and China after Beijing warned its citizens about travel and study plans in Japan.
There are no major European earnings or data releases Monday.
— CNBC’s Fred Imbert and Lee Ying Shan contributed to this market report.
