LAST UPDATE: 11.39
The main European stock markets are moving with positive signs as investors evaluate the monetary policy of the European Central Bank in the wake of yesterday’s interest rate hike.
In particular, the pan-European Stoxx 600 rises 0.28% to 425.58 points while the other pan-European Stoxx 50 earns 0.20%.
In the rest of the board, the German DAX gains 0.24%, Britain’s FTSE 100 gains 0.32% and France’s CAC-40 adds 0.23%.
In the periphery, the Spanish IBEX-35 the Italian also adds 0.61% FTSE MIB earns 0.17%.
It is recalled that on Thursday it announced a 50 basis point increase in interest rates, its first increase in 11 years, as concerns about out-of-control inflation outweighed fears of a slowdown in growth due to the Russia-Ukraine war.
The eyes were also on the “anti-fragmentation” tool that will contain the spreads of the eurozone’s government bonds, the Transmission Protection Instrument (TPI) approved by the Governing Council of the ECB to “preserve the smooth transmission of the direction of monetary policy throughout the euro area”.
British consumer confidence remains at a record low this month as they face rising inflation and higher interest rates, a survey showed today. Market research firm GfK said its index of consumer sentiment stood at -41 in July, in line with June’s 48-year low and below levels since previous episodes of recession in the British economy. Economists polled by Reuters had expected the index to fall to -42.
Meanwhile, France’s finance ministry said on Thursday that French economic growth will slow sharply next year as geopolitical risks rise, delaying progress on the public sector budget deficit. The ministry now sees growth in the eurozone’s second-largest economy slowing from 2.5% in 2022 to 1.4% in 2023.
Meanwhile, eyes also remain on political uncertainty in Italy, with snap national elections scheduled for September 25 following the resignation of Prime Minister Mario Draghi following the collapse of the coalition government.
Source: Capital
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