European stock markets close higher, with an eye on industrial production and China

Stock markets in Europe closed on Monday (14th) at a high, in a session marked by positive data from the industry in the euro zone.

Also supporting risk appetite were expectations of a less aggressive monetary tightening by the Federal Reserve (Fed, the US central bank) and support from the Chinese government for the country’s real estate sector.

In London, the FTSE 100 rose 0.92%, to 7,385.17 points, while the CAC 50, in Paris, advanced 0.22%, to 6,609.17 points, and the FTSE MIB, in Milan, closed higher of 0.58%, to 24,596.69 points.

In Madrid, the Ibex 35 index rose 0.84% ​​to 8,166.50 points. The DAX index, in Frankfurt, followed the movement and closed up 0.62%, at 14,313.30 points. Finally, on the Lisbon Stock Exchange, the PSI 20 increased by 0.71%, to 5,779.84 points. Quotes are preliminary.

Earlier, the official statistics agency of the European Union, Eurostat, reported that industrial production in the euro zone increased by 0.9% in September compared to August, above analysts’ expectations.

According to Capital Economics, the increase was due to the recovery in vehicle production. However, the consultancy points out that, although this production continues to recover, it should not compensate for a decline in energy-intensive sectors.

This Monday, member of the board of the European Central Bank (ECB), Fabio Panetta, said that monetary policy should avoid shifting inflation expectations through adjustments in monetary conditions, but with care not to generate excessive tightening.

ECB vice-president Luis de Guindos pointed out that the forecast for the euro zone is for a technical recession at the turn of the year, which will continue to influence a tighter monetary policy. The ideas influence the financing of companies and indicate a possible cooling down in the economies of the euro zone countries.

Also this Monday, according to sources heard by BloombergChina plans measures to ensure the “stable and healthy development” of the real estate sector, which would enable the recovery of Chinese developers, which are dealing with a liquidity crisis.

The country’s central bank also said on Monday that it would allow the deferment of loans taken out by small businesses, as another effort to sustain economic growth.

However, contrary to the positive news for stock markets coming from China, the speech of Christopher Waller, director of the Federal Reserve, indicates a more hawkish in the United States.

The director stated that there is still a way to go in relation to inflation before the country’s central bank stops raising interest rates, which affects Wall Street’s actions and, in the wake, influences European stock markets.