The increase in the interest rates by the Federal Reserve has implications globally. The European stocks are enjoying a high tide after the Fed rate hike. They are also influenced by the upcoming Dutch elections. The Brexit vote also has a positive impact on the stocks. For the fourth day in a row, the European stocks climbed during the start of the week. This week is closely watched by the investors as there are several important events happening throughout the world.
The European Stoxx 600 index gained 0.4% on Monday closing at 376.64. It is the highest value reached after March 3rd. For four straight sessions, the stocks continued to gain, keeping the investors on the edge. The John Wood Group PLC announced that it has plans to invest $2.73 billion in purchasing the oil field services company. The shares of John Wood immediately gained 1.4% after the announcement. The stocks of AMEC Foster Wheeler also gained 12% on the same day.
The Dutch elections are also closely watched by the market experts as it could bring about a change in the populist sentiment of the country. The scenario is changing in Europe with more leaders favoring the populist movement. Geert Wilders, the leader of the Party For Freedom is hoping to gain more votes. This has concerned the European investors because the far-right leader is known for his preference of Eurozone breakup. Even if Wilders manages to get more votes, he could only form a coalition government. However, his leadership will only show that the European countries are having a change of mind.
The elections in France are due in April and the same scenario prevails there too. Marine Le Pen, National Front Leader is vocal about his anti-EU policies. In the presidential election polls, Le Pen was favored by a majority of the French people. The European Union flourished due to the contributions from various European countries. A change in the attitude will mean that there will be a huge impact on the entire European market.
The UK investors are keenly watching the Brexit scene as the bill is up for discussing in the Commons House. The House of Lords have made some changes but the lower house is expected to overturn the recommendations and approve the bill. Once the bill is approved, Prime Minister Theresa May could trigger Article 50 which will officially commence Brexit deal. While there were rumors that the Prime Minister could start the process earlier this week, the official spokesperson confirmed that the process will be initiated only in the next week.
The Brexit plan is constantly under threat as Scotland wants to invoke the second referendum for freedom. Scotland is hoping to break from the UK and Nicola Sturgeon, the First Minister of Scotland announced in a press conference that the Scottish Parliament will vote for the new independence ballot. The Pound however recovered on Monday trading at $1.2230, enjoying a raise from $1.2168.