Analysts: European stocks halt five-day winning streak as energy stocks fall, overshadowing optimism about the Fed's rate cut
Odaily Planet Daily Report: European stock markets fell slightly on Tuesday, ending a five-day winning streak. The decline in energy stocks outweighed the recent optimism about the Federal Reserve's interest rate cut. The STOXX 600 index in Europe fell 0.5%, as falling oil prices hit energy stocks, and bank stocks also declined. The German DAX index fell 0.3%, ending its longest streak of gains since 2014. Earlier this month, global risk assets, including high-valuation stocks such as technology, were hit hard as investors worried about a slowdown in the US economy. In Europe, more defensive sectors such as telecommunications and healthcare have rebounded, helping the STOXX 600 index rebound and potentially set a new record high. Morningstar's European market strategist Michael Field said, "Generally speaking, it's healthy for the market to experience occasional minor declines, as it reminds people that the market is not an escalator, and it doesn't just go up without going down."
