European stock markets are moving upwards on Thursday as investors react to the Federal Reserve announcements yesterday for the gradual withdrawal of the monetary stimulus that launched at the peak of the coronavirus crisis.
The Fed announced on Wednesday that it would begin cutting monthly bond purchases from November to close them in 2022, paving the way for a rate hike at the end of the year or early 2023.
The US Federal Reserve will start reducing markets from the current level of $ 120 billion a month, starting at $ 15 billion starting in November.
On the board, the pan-European STOXX 600 index rose 0.4% to 483.02 points.
The German DAX gains 0.6% to 16,050.75 points, the French CAC 40 strengthens by 0.3% to 6,974.90 points, while the British FTSE 100 moves with small gains of 0.3% to 7,267.79 points after its decision Bank of England to keep interest rates unchanged.
In the region, the Italian FTSE MIB and the Spanish IBEX 35 strengthened by 0.3%.
At the end of the day, the growth of the Eurozone continued to slow at the beginning of the fourth quarter, with the business activity declining in services and manufacturing, according to the data of the IHS Markit research.
In particular, the composite PMI fell to a six-month low of 54.2 points in October from 56.2 points in September. The index fell for the third consecutive month and moved further away from the 15-year high last July, according to IHS Markit.
The services business index also fell to a six-month low of 54.6 in October from 56.4 in September. The PMI manufacturing index fell to an eight-month low of 58.3 points in October from 58.6 points a month earlier, Markit said on November 2.
Meanwhile, the price rally continued in September, with producer prices recording a new jump, exceeding analysts’ estimates.
In particular, Eurostat estimated that prices at factory gates increased by 2.7% on a monthly basis in September and 16% on an annual basis. These are the largest increases ever recorded in the Eurozone.
Analysts spoke of a monthly increase of 2.2% and an annual increase of 15.2%.
Investor corporate announcements, meanwhile, continue to attract the attention of investors, with giants such as Credit Suisse, BMW, Commerzbank, Deutsche Post, Enel and SocGen standing out today.
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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.
