European stock markets opened higher, boosted by weaker oil prices, as markets lowered their expectations of a Fed interest rate hike in September.
European stock markets opened higher after US inflation slowed, easing pressure on the Fed to raise interest rates. Markets remain focused on the US-Iran conflict and the unresolved crisis in the Strait of Hormuz.
On August 13, 2569 at 15.20:XNUMX p.m. European stock markets opened slightly higher, boosted by gains in travel stocks (up about 0.6%) following a decline in oil prices. This helped alleviate concerns about fuel costs for airlines and travel-related businesses. However, investors remained cautious as the conflict between the US and Iran, as well as challenges in shipping through the Strait of Hormuz, showed no clear signs of resolution.
The STOXX 600 index, reflecting the overall European stock market, opened at 659.65 points, up 0.17 points or 0.03%. Meanwhile, France's CAC 40 index rose 27.60 points or 0.32% to 8,702.54 points, and Germany's DAX index climbed 106.28 points or 0.40% to 26,437.35 points. This reflects that most markets are still in positive territory, but overall buying pressure remains weak.
A key positive factor came from US inflation data, with the Consumer Price Index (CPI) for July rising 0.1% from the previous month, in line with market expectations. The annual inflation rate slowed to 3.4% from 3.5% in June, easing concerns that the Federal Reserve (Fed) would need to accelerate further interest rate hikes at its September meeting and boosting investment sentiment in risky assets.
However, investors are closely watching the direction of oil prices and the situation in the Middle East, as negotiations between the US and Iran have shown no progress. Meanwhile, disruptions to shipping through the Strait of Hormuz, a strategically important route for global energy transport, continue, making oil supply risks a factor pressuring the market.
The overall European market, supported by expectations that the Fed may slow interest rate hikes and lower oil prices, faces geopolitical uncertainty, particularly the direction of a US-Iran conflict and the situation in the Strait of Hormuz, which could further fuel volatility in stock markets and energy prices.
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