European stocks close without a single sign, despite boost with US data

The bags of Europe closed without a single direction this Tuesday (16). Some of the region’s major stock indices gained momentum after the positive opening in New York, but London retreated, pressured by the drug’s stock. AstraZeneca.

In this scenario, the pan-European Stoxx 600 index rose 0.17% to 489.27 points.

“European markets continued to grow strongly today, with DAX and CAC40 accelerating to new highs,” says CMC Markets Chief Market Analyst Michal Hewson in a comment. The DAX, the benchmark index of the Frankfurt Stock Exchange, advanced 0.61%, to 16,247.86 points, while the CAC 40, in Paris, had a gain of 0.34%, to 7,152.60 points.

The FTSE 100, of the London Stock Exchange, on the other hand, retreated 0.34%, to 7,326.97 points. According to Hewson, the London index was pressured down by the share of AstraZeneca, which dropped 4.34%. “Today’s weakness may be due to the announcement made by Pfizer that it would allow generic drug makers to produce cheap versions of their new pill for covid-19 for low-income countries,” says the analyst. The two pharmaceuticals are competitors in the sector.

“The lack of really big news for the week so far has brought back the spotlight on central banks and inflation prospects, with some reduction in earnings forecasts underway as everyone tries to look to 2022,” says IG analyst Chris Beauchamp.

He adds that the euro’s weakness against the dollar, a result of speculation about a possible anticipated monetary tightening of the Federal Reserve (Fed, the US central bank), continue to “supply fuel” European equities.

O exchange depreciated tends to benefit exporting companies. The pound, on the other hand, has strengthened against the US currency, which negatively affects British export-oriented companies.

Among other markets, the FTSE MIB index retreated 0.23% in Milan, to 27,804.93 points, the PSI20 dropped 2.17% in Lisbon, to 5.654.18 points, and the Ibex 35 fell 0.61% in Madrid, to 9,040.20 points.

The roles of mobile operator Vodafone advanced 5.03% in London, after the balance of the first half of the fiscal year surpassed analysts’ expectations. In the beverage sector, Diageo rose 1.44% on the FTSE 100 after saying it expects its organic profit to increase in the coming years.

In New York, markets are operating at a high after higher-than-expected growth in retail sales and industrial production of the USA in October to September.

Also released this Tuesday, the second reading of the Gross Domestic Product (START) of the euro zone in the third quarter showed growth of 2.2% compared to the previous quarter.