European shares rebounded from session lows and closed almost flat on Thursday (27) after the European Central Bank (ECB) raised interest rates by 0.75 percentage point, according to market expectations, and signaled the need of higher prices to reduce record inflation.
The euro zone stock index closed down 0.1%. It even retreated as much as 1.2% after the ECB’s monetary policy decision.
The bloc’s banks outperformed, gaining 0.6%, after the ECB cut the subsidy it gave to lenders through cheap loans called Long-Term Targeted Refinancing Operations (TLTRO).
Analysts said this move was not as bad as feared.
The central bank raised its deposit rate by 0.75 percentage point to 1.5%, and put reducing its balance sheet on the agenda, but said “substantial” progress had already been made in its bid to combat the historic rise. of inflation.
The pan-European STOXX 600 index closed down 0.03% at 410.19 points, and the Italy < .FTMIB> and Spain indices outperformed their peers.
Boosting the UK’s FTSE 100, Shell rose 5.5% after the energy company posted $9.45 billion in profit and announced plans to increase its dividend by the end of the year, while France’s TotalEnergies gained 3, 0% after posting a jump in third-quarter net income.
The two companies helped lift Europe’s oil and gas sector by 3.5%.
- In London, the Financial Times index advanced 0.25% to 7,073.69 points.
- In Frankfurt, the DAX index rose 0.12% to 13,211.23 points.
- In Paris, the CAC-40 index lost 0.51% to 6,244.03 points.
- In Milan, the Ftse/Mib index appreciated by 0.90%, at 22,590.41 points.
- In Madrid, the Ibex-35 index registered an increase of 0.64%, to 7,921.10 points.
- In Lisbon, the PSI20 index depreciated by 0.30%, to 5,675.58 points.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
