European stocks hit another record on Monday reassuring statements by European Central Bank chief Christine Lagarde for interest rates that helped allay concerns that the central bank may move earlier than expected to tighten monetary policy in order to tackle inflation.
ECB President Christine Lagarde said today that the consumer price rally in recent months, although expected to last longer than expected, will start to slow down by 2022. In this context, any adjustment of ECB policy will be affected the economy, at the same time that rising prices will begin to lose momentum on their own, he said.
For his part, the governor of the central bank of Spain and member of the Board. ECB President Pablo Hernandez de Cos said today that the central bank is unlikely to raise interest rates in the second half of 2022.
De Cos said an increase in interest rates was not even being considered “for the period close to the second half of 2022” as the conditions set by the ECB for such a move are not expected to be met, based on central bank forecasts.
The ECB forecasts that inflation will be below the 2% medium-term target in 2023.
On the board, the pan-European STOXX 600 index rose 0.35% to 488.43 points, setting a new record.
The German DAX climbed to a new record high, recording a rise of 0.3% to 16,148.64 points, while the French CAC 40 closed at a record, strengthening by 0.5% to 7,128.63 points. The British FTSE 100 closed with small gains of 0.05% at 7,351.86 points.
In the region, the Italian FTSE MIB rose 0.5%, while the Spanish IBEX closed with small gains of 0.2%.
In business developments, Airbus’ title rose 1.7% after news that the company had received a multi-million order for 255 A321neo aircraft.
Shares of Royal Dutch Shell jumped 2.1% after the energy giant announced that it would simplify its business structure and move its headquarters from the United Kingdom to the Netherlands.
On the other hand, the Spanish bank BBVA fell 4.3% in the aftermath of its offer to buy the balance of Garanti BBVA for 2.25 billion euros.
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