European stock markets closed higher on Thursday (23), after minutes of the European Central Bank’s (ECB) latest monetary policy meeting reinforced the monetary authority’s concerns about economic growth in the euro zone and supported the end of the tightening cycle. . Today, the holiday in the US also removed liquidity from the markets, on a day when the stock exchange was also closed in Tokyo.
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At the end of trading in London, the FTSE 100 index rose 0.19% to 7,483.58 points. In Frankfurt, the DAX index rose 0.23% to 15,994.73 points. In Paris, the CAC 40 index rose by 0.24% to 7,277.93 points. In Milan, the FTSE MIB index rose 0.28% to 29,235.71 points. In Lisbon, the PSI 20 index rose 0.52% to 6,312.93 points. In Madrid, the IBEX index rose 0.29% to 9,916.30 points. Prices are preliminary.
Early in the morning, the mood of European markets was already somewhat positive after the UK Composite PMI came in above expectations and entered expansionary territory, indicating progress in the economy. Composite PMIs for the eurozone and Germany also rose, with the economic bloc’s index remaining above expectations.
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However, stock indices recorded a slight decline ahead of the release of the ECB meeting minutes, in a dovish tone that was short-lived and improved again. According to ING, minutes from today’s meeting show that the economic bloc’s central bank has already reached interest rate peaks and could cut interest rates much earlier than expected, although leaders should not assume such plans anytime soon, reinforcing the rhetoric. That they will maintain interest rates for a longer period. A long time ago. As ING noted, European Central Bank members Joachim Nagel and Gabriel Makhlouf stressed that interest rate hikes may not have reached their end.
In the United Kingdom, NatWest shares rose by 0.49%, after wide fluctuation during the trading session, one day after the country’s government announced that it intends to exit its stake in the bank and return it entirely to the private sector.
According to an analysis by Hargreaves Lansdowne, NatWest is “poised to benefit from some structural tailwinds, which should increase sector earnings over the medium term” and improve the value of its shares, which have suffered significantly in 2023. Expectations are that the British government is set to begin… Selling her holdings at this time, awaiting some improvement in the value of the shares, she confirmed that she would wait for “favorable” conditions to sell the shares.
In Germany, investors also watched news that the Finance Ministry suspended the financial instrument that limits the increase in government debt. Following the freeze, German 10-year bond yields rose sharply to around 2.619%.
