Volatile European Markets ahead of crucial central bank decisions

European markets remain highly volatile at the start of the third week of the conflict in the Middle East. Oil continues its rally, with Brent prices now 40% higher than before the war. Such levels have not been seen since February 2022.

European stock indices show overall slight variations. The CAC 40 recorded a decline of 0.21%, while the FTSE MIB posted a more marked decrease of 0.51%. In contrast, the FTSE 100 recorded an increase of 0.16%. The DAX also showed a slight dip of 0.08%, as did the IBEX 35, which fell by 0.35%.

Finally, the STOXX Europe 600 recorded a minor decline of 0.09%, indicating a generally weak day for the main European markets.

Brent Crude Oil this morning surpassed 106 dollars per barrel, up 2.85% from Friday’s close. West Texas Intermediate also rose, gaining 1.84% and surpassing 100 dollars per barrel.

This week will be crucial for monetary policy. The European Central Bank, the Bank of England, and especially the Federal Reserve will hold key meetings to discuss how to proceed in addressing current economic challenges, with a particular focus on inflation.

Benedetta Zimone