European stocks are moving higher on Wednesday, following gains in Wall Street and Asia, while investors are trying to assess the course of monetary policy in the US and Europe against the backdrop of the inflation rally in recent months.
The President of the European Central Bank, Christine Lagarde, stated earlier this week that Uptrends in prices are likely to subside before consolidating, in an effort to allay the concerns caused by her statements at last week’s press conference, when she pointed out that there is concern in the Board. of the ECB on inflation.
For his part, the Governor of the Bank of France and member of the Board. The ECB estimated yesterday that the reactions of the last days in the markets “they may have been very strong“, adding that inflation will gradually decline in the coming months.
Several analysts revised their outlook on ECB interest rates this year after last week’s central bank meeting, placing the first rise from their all-time low at the end of the year.
Statements by senior ECB officials have helped allay concerns that the central bank is preparing for an aggressive policy shift, leading to a de-escalation of bond yields. The yield in 10 years of Germany falls 3 basis points to 0.23%, while in 5 years it returned to a negative sign, after last week’s rally that led it over 0% for the first time since 2018.
On the board, the pan-European Stoxx 600 index rose 1% to 469.97 points.
The German DAX gained 0.9% to 15,383.66 points, the French CAC 40 strengthened by 1.1% to 7,104.19 points, while the British FTSE 100 gained small gains of 0.4% to 7,595.87 points.
In the region, the Italian FTSE MIB gains 1.15%, while the Spanish IBEX 35 strengthens by 0.7%.
Investors are also waiting for the data on inflation in the US, which will be announced on Thursday and are expected to be at the center of the Federal Reserve’s analysis of interest rates. The data are expected to show an increase in prices by 0.4% in January and by 7.2% from the corresponding period last year.
Meanwhile, the barrage of corporate results with L’Oreal, Deutsche Boerse, Siemens Energy, ABN Amro and GSK continues among the European giants that today announce their sizes for the previous quarter.
Source: Capital
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.
