Stock Market Outlook in Europe Suffers Worst Losses of The Year

The performance of the European Stock market outlook has been underwhelming lately. This last October has been the worst month for stocks since September of last year, to give an idea of where they are at. There was a positive rally that we noted towards the end of the month, which we should keep in mind. However, overall, the performance has been poor.

Over the course of October, the STOXX 600 index plummeted by 4.00%, leaving investors worrying. As we were saying, there was a slight upswing recently. The index rose by 0.60% in the last few days of the month. This positive movement has even led to a further rise of 0.16% so far as of today. So, there might be some hope of a positive stock market outlook in the coming months, but we should keep a balanced view. This upwards movement is likely the result of incoming economic data that investors are keen to get a hold of.

Key Metrics Affecting the Stock Market Outlook

In positive news, inflation in the Eurozone has been dropping, now being at 2.90%, its lowest point in 2 years. This was preliminary data, but it still exceeded the expectations of 3.10% for October. However, some agencies have also said that the economy of the Eurozone has undergone a contraction. It is supposedly now 0.10% smaller than it had been previously, a poor sign for the future of Europe.

Just last week, the European Central Bank made a decision to finally halt rate hikes after raising rates 10 times in a row.

Meanwhile, the S&P 500 did not shift by much at all, dropping by 0.08%, with the Dow down 0.18% and the Nasdaq by 0.29%. Even defensive stocks suffered.

Gas and oil stocks have been floundering, lowering by 0.80% by the end of the last session. BP’s stocks have particularly suffered, being one of the most volatile stocks, falling by a considerable 4.50%. Seemingly, the reason for this drop was the underwhelming performance of the sector for the third quarter.