European stock markets closed this Monday (6) in low, before renewed expectations that central banks in the region will raise interest rates in the coming months and maintain the restrictive monetary policy for an extended period.
In London, the FTSE 100, fell 0.82% to 7,836.71 points, while the DAX index, in Frankfurt, followed the movement and closed down 0.84%, to 15,345.91 points.
The CAC 40, in Paris, dropped 1.24%, to 7,137.10 points, and the FTSE MIB, in Milan, closed up 0.27%, to 27,022.33 points.
In Madrid, the Ibex 35 index fell 0.63% to 9,165.90 points. Finally, on the Lisbon Stock Exchange, the PSI 20 fell by 0.30% to 5,906.77 points. Quotes are preliminary.
CMC Markets explains that European markets are reacting to the perspective of interest rate hikes in the coming months by the Central Banks of the main economies, still in reaction to the publication of the US jobs report (payroll).
The document, which showed about half a million jobs created in January, “pushed a hole in the argument that interest rates would fall,” according to the analysis.
In London, investors also noted prospects for new interest rate hikes by the Bank of England (BoE), which were reiterated by the institution’s director, Catherine Mann, in a speech during a conference of the British BC.
The markets also remained attentive to ECB leaders, who reinforced new interest rate hikes in the coming months.
The president of the BC of Austria, Robert Holzmann, said that the European BC should continue to fight against inflation, while Bostjan Vasle, of the BC of Slovenia, said that the interest rate hikes are “far from over”.
President of the Latvian monetary authority, Martins Kazaks followed a similar line. The speeches of the three were recorded in a report by Bloomberg.
Among the indicators highlighted in this session, the drop in retail sales in the euro zone in December indicates that the block is likely to enter a recession in the first quarter of 2023, according to an analysis by Capital Economics.
In Germany, despite the increase in industrial orders, Commerzbank forecasts that activity will slow down in the coming months, since, according to the German department responsible for the data, the increase was due to an unusual volume of orders in the month.
Source: CNN Brasil
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