LAST UPDATE: 11.40
European stocks fell slightly on Monday, with investors looking to the other side of the Atlantic this week, in particular US inflation announcements and messages from Federal Reserve Chairman Jerome Powell. .on the timing of interest rate hikes.
The US Consumer Price Index is expected to be released on Wednesday and the Producer Price Index on Thursday. Last Friday, an initial estimate by the European Statistics Office showed that inflation in the Eurozone climbed to new record levels in December.
In particular, inflation in the eurozone climbed to a new record at 5% in December from 4.9% in November and -0.3% in December 2020.
Eurostat expects energy to have the highest annual rate again in December (26.0% compared to 27.5% in November). Structural inflation excluding energy and food is estimated to have remained unchanged at 2.6%.
In addition, investors are expecting more comments on the timing of the forthcoming interest rate hikes from Jerome Powell, as the Fed chairman will testify before a Senate committee on Tuesday.
The Fed has announced a more aggressive tightening of its monetary policy, while the minutes from the last meeting of the Fed in December, which were published last Wednesday, showed that the US central bank plans – in addition to raising interest rates – to proceed with a contraction its balance sheet.
The markets will also monitor talks between US and Russian diplomats in Geneva today aimed at de-escalating tensions over Ukraine.
In this climate, the pan-European index Stoxx 600 is down 0.13% at 485 points, with the automotive sector gaining 0.8%, while the industrial sector is down 0.6%.
In the individual dashboard, the German DAX loses 0.14% to 15,925 points, the French CAC 40 falls 0.07% to 7.1215 points, and the British FTSE 100 shows negative trends around 7,480 units.
On the periphery, the Italian FTSE MIB adds 0.3% to 27,700 points and the Spanish IBEX 35 records losses of less than 0.1% at 8,750 points.
In the individual shares, Carige jumped 4.3% after a report said that BPER Banca, Italy’s fifth largest bank, had improved its takeover bid against another “suitor”, Credit Agricole Italia.
BMW adds 1.4% after Goldman Sachs upgraded its share recommendation to “buy” and raised the target price to 123 euros from 110 euros.
The French technology consulting group Atos sank by 16.7%, after new profit warning issued, the second in seven months, a few days after the official inauguration of his new CEO, Rodolphe Belmer.
Atos stressed that its financial goals set in July will not be possible to achieve, due to delays in agreements with customers and due to lower margins in the hardware and software resale unit.
In macro of the day, The unemployment rate in Italy fell to 9.2% in November from 9.4% in October, as about 64,000 jobs were created during the month. Analysts expected the unemployment rate to fall to 9.3%.
In corporate news, the British arm of the German discount supermarket chain Aldi, announced that its sales in December increased by 0.4% compared to the previous year, when costs were higher than usual due to lockdown and temporary closure of bars and restaurants.
.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
