Today’s sessions in Europe’s main markets were little mixed and mixed, with investors assessing US inflation data.
In particular, the pan-European Stoxx 600 index finished trading at 440.16 units with just +0.06% and divided signs in its individual sectors. The energy sector gained 2% on the back of a rally in oil, while healthcare fell 1%.
The high-cap Stoxx 50 fared a little better, rising 0.2% to 3,757, while on the domestic charts, the German DAX slipped slightly by 0.05% to 13,694 points, the French CAC 40 strengthened by 0.3% to close at 6,544 points , while the British FTSE 100 fell by 0.55% to 7,465 points.
The picture was relatively better in the markets of the European region, where in Italy the FTSE MIB rose 0.7% to end at 22,858 points, while in Spain the IBEX 35 strengthened by 0.3% to close at 8,380 points.
Investors’ eyes are on the other side of the Atlantic, trying to decipher the Federal Reserve’s next moves and gauge the likelihood that the world’s largest economy will slip into recession.
New data released today showed an unexpected decline in the producer price index, confirming the case for easing inflationary pressures leaving room for more dovish moves by the Fed, following yesterday’s significant deceleration in consumer prices to 8.5% from 9 ,1%.
“Broadly speaking, it looks likely that the Fed will move towards a 50 basis point rate hike (p.p. vs. the 75 bps the market was estimating until the inflation data) but that remains a brisk pace based on historical data and will likely lead to a rather bumpy landing,” said T. Rowe Price’s Nikolaj Schmidt.
According to him, “the global economy is slowing at a sharp pace. This slowdown will drag down commodity prices, as well as inflation and inflationary expectations. The Fed will continue to tighten monetary policy until there is enough slack in the labor market . The need to create space in the labor market widens the specter of a much harder landing.”
At the corporate level, Aegon topped the Stoxx 600 with a 9% jump after the Dutch insurer upgraded its guidance for the year.
ALK-Abello also rallied 8%, against the backdrop of the better-than-estimated results announced by the Danish pharmaceutical company.
In contrast, Britain’s Netcompany sank 16% after announcing its own figures for the quarter.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
