European Stocks See a Rise; Major Airline Set to Reduce Workforce
European stock markets experienced a boost, while a leading airline company announced plans to slash 4,000 jobs from its payroll. Investors are keeping a close eye on the potential impact of a possible U.S. government shutdown later this week.
European Stocks Show Positive Movement
The primary index tracking European stocks showed an increase of about 0.2% in midday trading. The majority of sectors showed positive growth. Another European index saw a rise of about 0.6%, even though a German index remained unchanged after an initial morning surge. Meanwhile, a French index showed a slight gain of 0.1%.
Airline Company Announces Job Cuts
A well-known airline company saw its shares increase by 1.3% after the company announced that its free cash flow is projected to generate over 2.5 billion euros ($2.93 billion) annually. The company has set an earnings target of 8%-10% over the next two years. The airline also revealed plans to cut 4,000 jobs, mainly administrative roles based in Germany, by 2030. This is part of their digitalization and automation strategy. The company also plans to invest 600 million euros ($704 million) in a cargo hub at a major airport.
Pharmaceutical Stocks on the Rise
Pharmaceutical stocks also saw a gain, with a Belgian pharmaceutical company's shares soaring 16.4% after its skin treatment outperformed rivals in Phase 3 trials. A British drugmaker's shares also rose by 2.5% after the company announced a change in leadership. The company's CEO will step down in December and be succeeded by a new executive. Another pharmaceutical company added 0.8% after announcing it would list shares in New York while also continuing to trade on the London market.
However, a Danish biotech company's shares fell about 3% after they revealed plans to acquire a Netherlands-based cancer drugmaker in a deal worth $8 billion.
Spain's Inflation Rate Increases
In Spain, the inflation rate increased to 3% in September, up from 2.7% in August. The European Union's economic sentiment indicator is also expected to be unveiled this week.
U.S. Government Shutdown Looms
In the United States, the President is expected to meet with representatives from both major political parties in Congress. The aim of the meeting is to secure a deal on government funding and to avoid a government shutdown.
Annual Conference Begins in the U.K.
In the United Kingdom, the annual conference of the leading Labour party kicked off this week. The Finance Minister's keynote address on the opening day was interrupted by an unexpected disturbance.
Asian Markets Trending Upwards
Asian markets also showed positive trends, with a financial group seeing a significant jump of 36% after separating from its parent company.