European stocks close higher, with swings and in the wake of Wall Street

European stocks closed higher this Thursday (10th) in a session marked by the release of balance sheets, speeches by authorities and with US CPI data favoring the results.

The pan-European Stoxx 600 index was up 2.75%, to 431.89 points, at 13:57 (GMT).

In London, the FTSE 100 rose 1.08%, to 7,375.34 points, while the CAC 50, in Paris, advanced 1.96%, to 6,556.83 points, and the FTSE MIB, in Milan, closed in up 2.58% to 24,394.28 points.

In Madrid, the IBEX 35 index rose 1.15% to 8,133.20 points. The DAX index, in Frankfurt, followed the movement and closed up 3.51%, at 14,146.09 points. Finally, on the Lisbon stock exchange, the PSI 20 rose 0.80% to 5,836.29 points.

On the corporate agenda are the positive earnings that increased investor appetite. Highlights include Astrazeneca, which closed with a rise of around 2.88% by reversing a loss — surpassing forecasts in the third quarter — Telecom Italia, with a rise of 5.79%, and Spain’s Acciona, which closed with gains of almost 4%.

The European Central Bank (ECB) published an economic bulletin noting that price pressures in the euro zone “are evident in more and more sectors”, rising in part due to the impact of energy costs.

The institution assesses that supply bottlenecks “are gradually decreasing”, but their impact continues, which contributes to inflation.

In the wake of Wall Street, European equity markets reacted to US consumer price index (CPI) data, which came in below what analysts had predicted.

According to analysis by CMC Markets, the reaction of European markets to the number “was instantaneous and sharp, as equity and bond markets rose sharply, with bond yields falling sharply”.

Also on Thursday, investors kept on their radar speeches by economic authorities in Europe. Earlier, the chairman of the Supervisory Board of the European Central Bank (ECB), Andrea Enria, said that eurozone banks “are in a strong position”, but also stressed that there is “a lot of uncertainty” in the current economic scenario.

Also on Thursday, member of the European Central Bank (ECB) board, Isabel Schnabel, highlighted that the risk of recession in Europe has increased, but that her forecast is that, if there is indeed an economic contraction, it “probably will not be very deep, nor long.

According to a Convera report, European markets also reacted positively to the US elections, due to the fact that the predicted “red wave” (the color of the Republican Party) did not materialize.