2024-01-27 15:35:00
The pan-European Stoxx 600 index closed Friday up 1.12%, at the highest level in the last two years, after Thursday’s decision by the European Central Bank (ECB) to leave interest rates unchanged and some positive economic data, reports CNBC , quoted by News.ro.
European Central BankPhoto: Bottaro-Fotogramma / Zuma Press / Profimedia Images
The consumer goods index rose 5.2 percent, while technology shares fell 0.7 percent, giving up some of their recent gains.
Despite a shocking start to the year, a week of good stock developments took the regional Stoxx 600 index to its highest level since January 17, 2022, according to LSEG data.
French drinks maker Remy Cointreau outperformed the market with a 15% gain after reporting a weaker-than-expected drop in third-quarter sales.
Luxury goods maker LVMH also posted a 13 percent advance as fourth-quarter sales growth signaled a boost for the luxury sector.
Germany’s DAX rose 0.32%, Paris’ CAC 40 rose 2.28%, while London’s FTSE 100 advanced 1.4%. The Italian FTSE MIB index rose by 0.73% and the iBEX 35 index of the Madrid stock exchange by 0.2%.
The impulse given by the ECB
The ECB met market expectations on Thursday and kept interest rates at the current record level. The eurozone central bank deposit rate was held at 4% for the third consecutive meeting, and the ECB reiterated that it will keep interest rates high “for a sufficiently long period” to bring inflation to target.
Despite this, the market continues to see the central bank pivoting towards interest rate cuts in April or June, once the spring wage negotiations data comes out.
The ECB indicated on Thursday that domestic inflationary pressures are easing and that price increases are moving in the right direction.
Consumers in Great Britain are the most confident in the economic outlook from January 2022, as a result of the slowdown in inflation, the data of a new survey showed on Friday.
In France they were similar, but not in Germany.
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