European stock markets recorded a low this Wednesday, 12. Investors monitored signals from the Bank of England (BoE) and the European Central Bank (ECB), in addition to indicators. The pan-European Stoxx 600 index closed down 0.53% at 385.88 points.
On the indicator agenda, industrial production in the euro zone grew by 1.5% in August compared to July, above the forecast of a 0.5% rise by analysts surveyed by the Wall Street Journal. Oxford Economics said in a report that the region’s industry held up well in August, but warned that there will be worsening ahead, projecting a drop of around 3% in industrial production in the local winter months.
ING, for its part, saw today’s eurozone industry data as another argument for the European Central Bank (ECB) not to back down from ongoing monetary tightening to fight inflation. ECB President Christine Lagarde said that the institution would continue to respond to the data and considered that inflation would continue to drive prices in the euro zone.
In the region’s largest economy, Germany, the government revised downward projections for the economy. He now expects German GDP to contract by 0.4% in 2023, with growth of 1.4% in the current year.
In the United Kingdom, industrial production dropped 1.8% in August compared to July, when analysts had predicted stability. Still in the country, the Bank of England reaffirmed this Wednesday that the bond purchase program (gilts) to support pension funds ends on Friday, the 14th, as already planned, and stressed that the previous communication had been ” absolutely clear” in contacts with banks on the subject.
BoE Chief Economist Hull Pill spoke in a similar vein, calling operations in the gilt market “temporary and focused” as well as renewing a commitment to fighting inflation. In this context, the 20-year gilt interest today reached a maximum in 20 years, according to the Dow Jones Newswireswith the British stock market reacting negatively to the BoE’s stance.
On the London Stock Exchange, the FTE 100 index closed down 0.86%, at 6,826.15 points.
In Frankfurt, the DAX index fell 0.39%, to 1,172.26 points.
The Paris Stock Exchange’s CAC 40 index fell 0.25% to 5,818.47 points.
In Milan, the FTSE MIB index closed down 1.27%, at 20,466.77 points.
On the Madrid Stock Exchange, the IBEX 35 index dropped 1.05% to 7,278.40 points.
In Lisbon, the PSI 20 dropped 1.86%, to 5,190.28 points.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
