European stock markets closed higher on Tuesday (13), after the consumer price index (CPI) in the United States was lower than expected by the market and with inflation data from Germany according to the prediction. Still, the expectations for the decision of the main BCs also guided the business of this session.
In London, the FTSE 100 rose 0.76%, to 7,502.89 points, while the CAC 40, in Paris, advanced 1.42%, to 6,744.98 points, and the FTSE MIB, in Milan, closed higher of 1.37%%, to 24,636.94 points. In Madrid, the Ibex 35 index rose 0.73% to 8,318.80 points. The DAX index, in Frankfurt, followed the movement and closed up 1.34%, at 14,497.89 points. Finally, on the Lisbon Stock Exchange, the PSI 20 increased by 0.39%, to 5,793.05 points. Quotes are preliminary.
In the wake of Wall Street, European markets reacted positively to the publication of the US CPI, which advanced below expectations, increasing investor risk appetite. On the radar, there are also the next decisions on the rate of increase in interest rates, both by the European BCs, on Thursday, and by the US BC, on Wednesday.
Earlier, Germany’s statistics agency published on Tuesday that the country’s annual consumer inflation rate slowed to 10% in November, in line with market expectations. The country’s economic expectations index advanced in December, according to the ZEW institute. In the view of Capital Economics, the data indicates that the sentiment “clearly” points to a recession.
On Tuesday, the Bank of England (BoE) published its financial stability report, indicating that UK banks are “strong enough” to support businesses and households. According to the report, interest rate hikes by central banks in response to rising inflation are likely to continue.
Among the highlights of the trading session is the airline Deutsche Lufthansa, which closed at an increase of more than 3.5% after raising its profit projection for 2022, after indicating that the year continued with a strong demand for air travel.
On the other hand, the company Rolls-Royce registered a drop of more than 2.5% on the London Stock Exchange after negative comments by JPMorgan analysts on the performance of the company’s new CEO, Tufan Erginbilgic, who, according to CMC Markets, should outline a outlook weaker than expected.
Source: CNN Brasil
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