Cautious rise in the European markets with a view to the economy

LAST UPDATE 14:00

The main European indices are moving steadily upwards but with controlled gains in the first transactions of the week, after a turbulent five days at the pace of successive interest rate hikes worldwide.

In particular, the pan-European Stoxx 600 index rose slightly by 0.5% to 405.2 points, with the banking sector moving at + 1.8% while construction and raw material companies fell 1.9%.

Similarly, the Stoxx 50 high-capitalization is moving with small gains of 0.35% and is trading at 3,450 points.

In the individual European boards, the German DAX is up 0.35% at 13,171 points, the British FTSE 100 is up 1% at 7,088 points, while the French CAC 40 is up slightly by 0.17% at 5,892 points.

The Italian FTSE MIB is also moving upwards in the region, strengthening by 0.55% moving to 21,992 units, while in Spain the IBEX 35 records significant gains of 1.1% and trades at 8,235 units.

In individual stocks, Renault is jumping more than 7% amid a Jefferies title upgrade to a “buy” from a “hold”, supporting the French market, which is moving nervously in the wake of its loss. parliamentary majority for President Macron’s party.

The opposite course, however, follows the French title of Rexel, which sinks by 6.8%.

Markets, not only in Europe but globally, are coming from a week of intense crunch in the wake of successive central bank moves to tame unbridled inflation.

The US Federal Reserve raised interest rates last Wednesday by a staggering 75 basis points (0.75%), for the first time since 1994, and has announced it will continue to tighten its monetary policy cycle. with a new increase in July, by 50 bp. or maybe 75 p.m. again.

Then, on an increase in its own interest rates, Switzerland proceeded unexpectedly on Thursday, for the first time in the last 15 years and by 50 bp. as well as the Bank of England, by 25 bp. as expected.

Investors are becoming increasingly concerned that the simultaneous drainage of liquidity globally to control inflation will lead to a global recession, which is clearly reflected in the charts.

Characteristically, in the US the big S&P 500 index completed its worst week since 2020 with total losses of 5.8%, while the industrial Dow Jones completed its 11th week of decline in the last 12 and is far from entering a typical bear market area. less than 300 units.

In the macroeconomic news of the day, wholesale prices in Germany jumped by a staggering 33.3% year-on-year in May, the largest level ever recorded since reunification, indicating that inflationary pressures are far from being reduced.

It is noted that the US market will remain closed today due to the June 19 holiday, for the release of slavery.