European Stock Index Posts Best Month Since July For China, Pleased With Low Interest Rate Hike – 11/30/2022

Written by Suzanne Mathew and Devik Jain

(Reuters) – The STOXX 600 closed higher on Wednesday, posting gains for the second consecutive month on hopes of an easing of COVID-19 restrictions in China and after moderate inflation data from the euro zone boosted sentiment. by the European Central Bank.

The European index rose 0.6% and ended November up 6.8%, its best monthly performance since July.

Luxury stocks with exposure to China were among the biggest supporters of the STOXX 600 on Wednesday, followed by auto and commodities stocks.

China’s giant cities of Guangzhou and Chongqing announced an easing of Covid-19 restrictions on Wednesday, after a series of protests against the world’s strictest measures. But with a record number of cases across the country, there seems little prospect of a major reversal of the “Covid-Zero” policy.

Meanwhile, data showed consumer prices in the eurozone rose 10% in November, well below expectations of 10.4% and after a 10.6% rise in October, prompting traders to raise their bets to 57% from a 50 basis point rise in prices. interest by the European Central Bank. in December. [0#ECBWATCH]

The benchmark STOXX 600 index has risen about 15% from its September lows on hopes that the Federal Reserve will raise smaller interest rates amid signs of a slowing US economy.

As Europe’s energy crisis continues, Citigroup expects the eurozone and the UK to enter recession by the end of this year and forecasts contraction of 0.4% and 1.5%, respectively, for next year.

The FTSEurofirst 300 index closed up 0.76%, at 1,741.56 points.

In London, the Financial Times Index advanced by 0.81%, to 7,573.05 points.

In Frankfurt, the DAX rose 0.29% to 14,397.04 points.

In Paris, the CAC 40 rose by 1.04%, at 6,738.55 points.

In Milan, the Ftse/Mib Index rose 0.59% to 24,610.29 points.

In Madrid, the Ibex-35 index closed flat at 8,363.20 points.

In Lisbon, the PSI20 rose 0.55% to 5,862.69 points.

(Reporting by Susan Mathew and Devik Jain in Bengaluru)