European stock markets closed with no single direction this Tuesday (10) in trading session marked by the prospects of the next interest rate hike by the European Central Bank (ECB) and with projections of growth in the euro zone.
Still, the expectation for the consumer price index (CPI, its acronym in English) of the United States also guided the business in this session.
In London, the FTSE 100 index fell 0.39% to 7,694.49 points. The DAX, in Frankfurt, followed the movement and closed down 0.12%%, to 14,774.60 points, while the CAC 40, in Paris, fell 0.55%, to 6,869.14 points, and the FTSE MIB , in Milan, closed down 0.08%, at 25,364.61 points.
In Madrid, the Ibex 35 index rose 0.33% to 8,723.80 points. Finally, on the Lisbon Stock Exchange, the PSI 20 rose 0.43% to 5,952.40 points. Quotes are preliminary.
This Tuesday, ECB director Isabel Schnabel indicated that an increase in interest rates will have to come to reach levels “restrictive enough” for inflation to return to the 2% target in the euro zone. However, according to an analysis by High Frequency Economic, the comment “comes as a surprise to no one”.
With an eye on growth forecasts, the European BC indicated, in a bulletin, that the short-term growth prospects in the euro zone are weaker than that of the United States. “This implies that the impetus of economic activity for inflation will remain lower in the euro zone”, indicates the report.
The perception is similar to that of the World Bank, which indicated today that the forecast is for stagnation for the region in 2023. Reuters which predicts that the eurozone contraction for 2023 may be less profound than what was expected in November 2022.
Following Wall Street, stock exchanges in Europe also reacted to the prospects for interest rate decisions by the Federal Reserve (Fed, the US central bank), according to an analysis by CMC Markets. According to the report, the result of “this week’s US CPI is set to become the latest point in the tug of war taking place between the market and the Fed.”
Among the highlights is the fall of retailer Next, which fell by more than 3% on the London Stock Exchange, returning recent gains. CMC Markets, in turn, highlights the shares of Games Workshop, which was down more than 4% also in London after reporting a drop in profit.
BMW was up nearly 1% in Frankfurt after the company reported that sales of electric vehicles in 2022 more than doubled compared to the previous year.
Source: CNN Brasil
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