2023-07-12 20:27:28
European stocks – Frankfurt Stock Exchange
European stocks jumped, on Wednesday, following additional signs of a further decline in consumer inflation in the United States fueled hopes that the US Federal Reserve would stop raising interest rates soon, and technology and mining stocks led the gains.
US consumer prices increased 3.0% in June, the smallest year-on-year increase since March 2021, following rising 4% in May.
Core inflation, which excludes volatile food and energy prices, rose 4.8 percent last month from a 5.3 percent increase in May.
Traders still expect the US central bank to raise interest rates by 25 basis points at its meeting later this month, but analysts said the bank may be close to ending the monetary tightening cycle given the downward trend in inflation.
stock movements
The pan-European Stoxx 600 closed up 1.5 percent, extending gains for the fourth consecutive day.
British Virgin Money shares rose 11.5 percent, while Lloyds, Barclays and HSBC rose nearly 3 percent following the Bank of England said Britain’s eight largest banks had no capital problems.
Banks’ gains contributed to the rise of the FTSE 100 index in Britain by 1.8 percent, to top the gains among its peers in Europe, and to push the European banks index up 1.9 percent.
The mining companies index was the biggest gainer among the sub-indices, increasing 3.8 percent, as metal prices rose due to the dollar’s decline.
The technology companies index rebounded thanks to the gains of semiconductor companies, which ranged in value from four to 6.5 percent.
European stocks
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