European stocks close higher, eyeing ECB and waiting for US CPI

European stock markets closed with an advance of about 2% this Monday (12).

On the radar of the trading desks, there were speeches by European Central Bank (ECB) leaders, while operators await the result of the consumer price index (CPI) of the United States, the world’s largest economy.

The pan-European Stoxx 600 index rose 1.76% to 427.75 points.

In London, the FTSE 100 closed up 1.66% to 7,473.03 points, while in Paris, the CAC 40 was up 1.95% to 7,473.03 points.

“Friday’s resilient tone continued to prevail in markets this new week as gas prices fall in Europe and hopes grow that we have already seen the peak of US inflation,” says CMC Markets analyst Michae. Hewson.

Such facts “helped to maintain and build on the rebound seen last week, which took the FTSE 100 to its highest levels this month”.

The US CPI will be published on Tuesday and the expectation among traders is that there will be a slowdown from the previous reading.

The strong advance on Monday came despite the lower-than-expected result of industrial production in the United Kingdom. The forecast was for a 0.2% increase in July compared to June, which took analysts by surprise by the 0.3% drop in the period.

As for the ECB, leader Isabel Schnabel noted that interest rates should be raised in the coming months, as the euro zone could see inflation “rise further”. Vice President Luis de Guindos noted that the number and extent of new interest rate hikes will depend on economic indicators.

In Frankfurt, the DAX gained 2.40% to 13,402.27 points, and in Milan, the FTSE MIB rose 2.33% to 22,610.40 points.

In the Iberian markets, the PSI 20 rose 1.58%, to 6,080.75 points, and the IBEX 35 advanced 2.01%, to 8,194.30 points, in the preliminary reading.