European stock markets remain steady on Monday while German stocks outperformed as a recent survey of business sentiment resulted in better-than-expected outlooks. The DAX gained 0.6% on the day following strong gains after a cold reserve deal was announced.
The sentiment survey indicated that morale fell less than expected in October. This indicates that the economy remains strong even after the Volkswagen scandal and a slowing Chinese economy.
Germany is Europe’s largest economy, and is used as an indicator of health and the European stock markets. The DAX is down 12% since April. Analysts suggest that Volkswagen has had a major impact on the index, which has kept the index from rising even further. Germany was the biggest beneficiary of the Chinese rate cut on Friday, and is awaiting several central bank meetings that are taking place this week.
These meetings will have a direct impact on the global economy.
Analysts warn that ahead of the Federal Reserve meeting that is scheduled for Wednesday, the markets will fluctuate and may even pull-back in Europe.
Asia’s sales have caused Peugeot stocks to slide 2.1% after reports of a 3.2% increase in third-quarter revenue. Investors are worried that struggling sales in Asia will affect the company in the fourth quarter.