European stocks close higher, extending recent gains after region’s PMIs

Stock markets in Europe closed this Wednesday (4) higher, with positive data from the purchasing manager’s index (PMI, its acronym in English) from Germany and the euro zone and expanding the gains of the last few days.

In London, the FTSE 100 rose 0.41%, to 7,585.19 points, while the CAC 40, in Paris, advanced 2.30%, to 6,776.43 points, and the FTSE MIB, in Milan, closed higher of 1.74%, to 24,860.56 points. In Madrid, the Ibex 35 index rose 1.89% to 8,556.20 points. The DAX index, in Frankfurt, followed the movement and closed up 2.18%, at 14,490.78 points. Finally, on the Lisbon Stock Exchange, the PSI 20 rose 0.64% to 5,866.87 points. Quotes are preliminary.

The market reacted positively to the improvement in services activity in the Eurozone in December. While still contracting, the region’s PMI, as measured by S&P Global, rose to a five-month high, while Germany’s surpassed its previous reading.

In the view of Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, the “wind” should remain favorable for European stock markets, especially after Tuesday’s data on German inflation, which slowed down more than expected, giving signs that inflationary pressures are subsiding, which is good news for the European Central Bank (ECB) and for the monetary authority’s next interest rate decision.

Among the highlighted papers are the shares of Ocado, which operated at an increase of almost 8%, despite the negative forecasts for its economic performance in 2023. On the other hand, Glencore had a decrease of more than 6%, extending recent losses after having its price target cut by the Credit Suisse Group, Morgan Stanley and Barclays.