New record for STOXX 600, DAX and CAC-40

The pan-European STOXX 600, the German DAX and the French CAC 40 climbed to new all-time highs on Tuesday as investors remain optimistic that the European Central Bank will not rush to withdraw the stimulus measures, despite the rally of inflation in recent months.

The head of the ECB, Christine Lagarde, in her speech in the European Parliament yesterday reiterated that she does not expect the conditions for an increase in interest rates to be met in 2022, while pointing out that the decisions on the extraordinary bond purchase program will be taken in December.

The central bank president also noted once again that the ECB expects inflation to slow next year, although it will take longer to fall than originally expected.

In this climate, the pan-European STOXX 600 index closed with small gains of 0.2% at 489.27 points, setting a new record.

The German DAX closed at a new record high with a rise of 0.6% to 16,247.86 points, while the French CAC 40 also set a record, closing with small gains of 0.3% at 7,152.60 points. The British FTSE 100, meanwhile, lost 0.3% to 7,326.97 points.

In the region, the Italian FTSE MIB fell 0.2%, while the Spanish IBEX 35 lost 0.6%.

At the end of the day, the data released today showed that the GDP of the Eurozone grew by 2.2% from quarter to quarter, confirming analysts’ estimates.

In business developments, the title of the Dutch Prosus NV jumped 4.2% after estimating higher profits for the first half of 2022.

The French Kering jumped 4.4% after the announcement of the leading brand of Gucci that it expects its revenues in 2021 to be at pre-pandemic levels or even to exceed them. HSBC upgraded its share recommendation to “buy”.

The British Vodafone also recorded strong gains of 3.1% after the upward revision of the forecasts for free cash flows.