Pepco shares lead: up 1.5%
Among the largest companies, Pepco shares performed best, rising 1.50% during Friday’s session. Trading on major foreign markets performed noticeably better.
DAX gained 1.36%, CAC40 rose 0.88%, and the UK FTSE250 increased 0.74%. The most important macro releases were preliminary PMI indices.
In the euro zone, the composite index rose in July to 51.9 points from 50.0, mainly thanks to a rebound in industry, and the biggest positive surprise came from Germany, where the index reached 51.2 points versus expected 49.7.
In the United States, the composite PMI rose to 53.6 points, confirming the economy’s continued resilience.
Brent falls over 5%
The start of the week should bring a clear improvement in sentiment in global financial markets. Over the weekend, the United States and Iran paused mutual attacks, which investors interpreted as a signal of possible conflict de-escalation.
On Monday morning Brent oil prices fall over 5%.
In the macro calendar, investors will focus mainly on the release of the German Ifo index. Consensus expects the business climate indicator to rise to 86.1 points from 85.6 in June. The reading will be an important complement to Friday’s PMI data and will help better assess whether the improvement in German economic activity is also reflected in business sentiment. At 14:30, orders for durable goods in the United States will be published. Economists expect a 1.6% rise after a 4.5% drop in May.
The reading will be one of the key reference points before the Federal Reserve’s Wednesday decision.
Japanese giant abruptly ends talks with Żabka
At the beginning of the week, Żabka may be in the spotlight, because on Saturday Seven & i Holdings, the owner of the 7-Eleven chain, announced the withdrawal from the planned investment in the Polish company. The reason was a lack of agreement with the seller on transaction terms.
