European stocks continue to trade mixed on Thursday as investors try to assess the next moves of the central banks to face the unprecedented rally of inflation prices in the midst of the global recovery from the pandemic.
Data released yesterday in the US showed that the consumer price index rose by 7% in December. This was the fastest growth rate since 1982. The figures followed Federal Reserve Chairman Jerome Powell’s congressional hearing Tuesday in which he said he would not allow high inflation to materialize, in a new sign that the Fed was preparing to open a tightening cycle. of its policy starting in March interest rate hikes.
The pan-European Stoxx 600 recorded marginal losses of 0.02% at 486.11 points. The pan-European index started in 2022 at new record highs, but in recent days pressures have rekindled as investors worry about the risks to growth from the expected shift of central banks in Europe and the US to tighter monetary policies this year to tackle inflation. .
Concerns about the course of the recovery this year are fueled by the rapid spread of coronavirus cases due to the new omicron mutation.
The European Central Bank (ECB) also warned today that high commodity prices, the emergence of the coronavirus’s micron mutation and the possibility of a faster-than-expected tightening of monetary policy could weigh on global growth in 2022.
“Persistent supply chain disruptions, rising commodity prices and the emergence of the coronavirus micron mutation continue to weigh on short-term growth prospects,” the ECB said in a statement released today.
“An earlier and faster tightening of monetary policy in large developed economies could have a negative impact on financial conditions in emerging markets and this could be a downside risk to growth,” he added.
On the board, the German DAX gained marginal gains of 0.04% at 16,016.50 points, the French CAC-40 fell 0.2% to 7,220.55 points, while the British FTSE 100 lost 0.03% to 7,551, 41 units.
The picture is better in the region with the Italian FTSE MIB and the Spanish IBEX 35 at + 0.3%.
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