Most European stock markets close higher, with an eye on ECB and BoE

European stock markets mostly closed with a positive sign this Monday (16) in trading session with an empty agenda and with investors guided by comments from leaders of the European Central Bank (ECB) and the Bank of England (BoE) about the next steps of monetary policy.

Also, as the North American exchanges were closed due to a local holiday, the trading volume in Europe was more restricted.

In London, the FTSE 100, rose 0.20%, to 7,860.07 points, while the DAX index, in Frankfurt, followed the movement and closed up 0.31%, to 15,134.04 points.

The CAC 40, in Paris, advanced 0.28%, to 7,043.31 points, and the FTSE MIB, in Milan, closed up 0.46%, to 25,901.33 points.

In Madrid, the Ibex 35 index fell 0.01%, to 8,880.80 points. Finally, on the Lisbon Stock Exchange, the PSI 20 also went against the grain of the majority and retreated 0.26%, to 6,015.77 points. Quotes are preliminary.

Directing investors to prepare for the next increase in interest rates, an important factor for the financing and survival of companies, ECB leader Olli Rehn defended that the interest rates of the European monetary authority will still need to rise “significantly” to reach the restrictive levels that ensure the return of inflation to the target of 2% per year in the medium term.

Despite consecutive days of highs, in which the FTSE 100 seems close to reaching its historic closing high of 7,877.45 points, Capital Economics’ forecast for the United Kingdom is of a possible recession this year. According to Paul Dales, chief economist for the UK at the consultancy, rising interest rates should be an obstacle for more sensitive sectors in the first half of this year.

Speaking to the British Parliament this Monday, the Governor of the Bank of England (BoE), Andrew Bailey, argued that the rise in interest rates in the United Kingdom did not create risks to the country’s financial stability.

Also on investors’ radar is the opening of the World Economic Forum in Davos, taking place this Monday, in Switzerland, bringing together world leaders until Friday to discuss various topics.

Among the papers highlighted this Monday, CMC Markets points to those related to travel and leisure, with a focus on EasyJet, which was up 2.36% in London, extending last week’s gains. Among commodity-related companies, Polymetal was up 2.15%, leading London’s gains, while Rio Tinto was down nearly 2%.