European stock markets closed higher, in a session marked by inflation data from the United Kingdom, according to the head of the European Central Bank (ECB) and investors awaiting the next interest rate decision by the main central banks.
In London, the FTSE 100 rose 0.06%, to 7,476.63 points, while the CAC 40, in Paris, advanced 0.46%, to 6,677.64 points, and the FTSE MIB, in Milan, closed higher of 0.29%, to 24,277.49 points. In Madrid, the Ibex 35 index rose 0.81% to 8,291.80 points. The DAX index, in Frankfurt, followed the movement and closed up 0.74%, at 14,370.72 points. Finally, on the Lisbon Stock Exchange, the PSI 20 increased by 0.11%, to 5,751.82 points. Quotes are preliminary.
Earlier, the head of the European Central Bank and president of the Central Bank of France, François Villeroy de Galhau, stated that it is not possible to exclude a “temporary” recession in France in 2023, projecting that, throughout 2022, the Gross Domestic Product ( GDP) of the country grows. Among the UK drivers, the publication of the Bank of England (BoE) stands out, which indicated that the median of inflation expectations decreased both for one year and for 12 years.
Investors also remain cautious as they await the ECB’s rate decision next week. In a report, Oxford Economic predicts that the monetary authority should slow down the pace, by 50 basis points (bp), “in view of the incipient signs of moderation in inflation”. However, if global inflation does not moderate substantially in the coming months, the consultancy points out that the ECB may extend the cycle of increases beyond current projections.
Still, CMC Markets indicates that the attention of investors in European equities is now focused on the next indicators, amid a scenario of decelerating growth and doubts about the rigid nature of inflation, “as yields rose again after the US PPI”, which came in higher than expected by the market.
Among the highlighted stocks is the company DS Smith, which closed at an increase of more than 4% on the London Stock Exchange after the company recorded higher revenue and profit in the first half than expected, raising forecasts for next year. On the other hand, the company Anglo American showed weakness in London, registering a drop of more than 3% after the company reduced its copper production perspective for 2023.
Source: CNN Brasil
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