European markets jumped on Thursday, building on momentum from yesterday’s session, with investors assessing the minutes of the Federal Reserve’s latest meeting and not being swayed by Johnson’s resignation in the UK, after appearing to have discounted it the development.
In particular, the British Prime Minister, despite the efforts to stay in power, resigns as Prime Minister of Britain following the mass resignations of more than 54 ministers and government officials.
Johnson has said he will continue to serve as Britain’s prime minister until a new Tory leader is elected. “The process of choosing a new leader should start now,” Johnson said, speaking outside Number 10 Downing Street. “And today I appointed a cabinet to serve, as I do, until a new leader is appointed,” he added.
At the center of investor interest were Federal Reserve minutes released yesterday confirming the tight stance the US central bank has taken to tame inflation, with officials estimating that another rate hike of 50 or 75 basis points is likely it will be “fit” at its next meeting on July 26-27.
Federal Reserve officials acknowledged that a “tighter stance” of policy will be appropriate if inflation does not begin to ease. “Participants acknowledged that policy tightening could slow the pace of economic growth for some time, but considered a return of inflation to the 2% target critical in order to achieve maximum employment on a sustainable basis,” the minutes said.
Back in Europe, the ECB also released the minutes of its latest meeting, which showed that the bank’s officials are considering a rate hike of more than 25 basis points in July.
In this climate, the pan-European index Stoxx 600 rose 1.88% to 415.01 points, with the mining sector leading the rise with a 5.6% rally, while the food and beverage sector recorded marginal losses.
In the individual boards, the German DAX gained 1.97% to 12,843.22 points, the French CAC 40 strengthened by 1.6% to 6,006.70 units, while the British FTSE 100 added 1.14% to 7,189.08 points.
The picture is even better in the region, where the Italian FTSE MIB made a mini-rally of 3.05% to 21,558.07 units, while the Spanish IBEX 35 strengthened by 2.19% to 8,122.50 units.
In the individual sharesDanish shipping giant Maersk rose 7.1% and Tenaris stock gained 9.8% after Jefferies upgraded the steel pipe maker’s stock to “buy.”
At the bottom of the Stoxx 600, Danish life sciences company Chr. Hansen fell 9.8% after disappointing quarterly results, while Ladbrokes owner Entain slipped 6.6% after downgrading its full-year guidance.
Sta macro of the day, according to data, industrial production in Germany increased at rates lower than estimates, by 0.2% on a monthly basis, while on an annual basis it fell by 1.5%.
Source: Capital
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