Rebound on European stock markets with gains of 1%

Euro markets are recovering on Tuesday, erasing some of their heavy losses at the start of the week, with investors awaiting inflation data to be announced in the US this week, as well as a clearer signal from the Federal Reserve on whether even proceed to 4 interest rate hikes in 2022 to tame the spike in inflation.

US consumer prices have already climbed to 6.8%, the highest level in nearly 40 years. The jump in inflation led Goldman Sachs analysts to estimate for four interest rate hikes by the Federal Reserve this year, instead of the three previously expected. Analysts at JP Morgan and Deutsche Bank are also expecting four increases.

At the same time, the data announced last week showed that Eurozone inflation hit a new record in December, climbing to 5% from 4.9% last month.

In this climate, the performance in 10 years of Germany reached on Monday for a little the highest level since May 2019, approaching closer to 0%. Italy’s 10-year yield also rose to its highest level since July 2020, at 1.33% and then fell to 1.29%.

“Today, the big issue is that Germany’s 10-year yield is heading towards 0%, due to the jump in Eurozone inflation and concerns about a more aggressive stance by the ECB,” said Althea Spinozzi of Saxo Bank, according to Reuters.

The pan-European index Stoxx 600 gains 1% “touching” 484 points, driven by the technology industry, which is strengthened by 2.1% and leads the profits.

In the individual dashboard, the German DAX adds 0.95% to 15,910 points, the French CAC 40 strengthened by 1% to 7,185 points and the British FTSE 100 marks an increase of 0.56% to 7,490 points.

On the periphery, the Italian FTSE MIB gains 0.63% to 27,525 points and the Spaniard IBEX 35 climbs 0.46% to 8,745 points.

In Asia stock markets show mixed signs on Tuesday, while in Australia big bank names are losing in today’s negotiations. The Commonwealth Bank of Australia slipped 1.75% and ANZ lost 1.3%.