Stock indices of Western European countries are steadily rising during trading on Friday, following Wall Street and Asian stock markets.
The composite index of the largest companies in the Stoxx Europe 600 region increased by 1.41% by 11:28 Moscow time and amounted to 419.92 points.
The German DAX rose 1.59%, the French CAC 40 rose 1.5%, and the British FTSE 100 rose 1.41%. The Italian FTSE MIB and the Spanish IBEX 35 gained 1.88% and 1.65% respectively.
Investors continue to evaluate the results of the meeting of the European Central Bank (ECB).
The ECB raised the base rate on loans to 1.25% per annum, the rate on deposits – up to 0.75%, the rate on margin loans – up to 1.5%. He also announced his intention to continue raising rates in the next few meetings.
ECB President Christine Lagarde said during a press conference following the meeting that further rate increases will be determined by incoming statistical data.
The ECB raised its forecast for consumer price growth this year to 8.1%, next year to 5.5%, and in 2024 to 2.3%. In June, the bank’s analysts estimated these figures at 6.8%, 3.5% and 2.1%, respectively.
According to the new forecast, the GDP of the Eurozone in 2022 will increase by 3.1% against the previously estimated 2.8%. However, expectations for the coming year are worsened to 0.9% from 2.1%, for 2024 – to 1.9% from 2.3%.
Meanwhile, the energy crisis remains a reason for investors’ fears. Market participants are worried about the consequences of the crisis on the eurozone economy, writes Trading Economics.
Statistics released on Friday showed that industrial production in France fell in July for the first time since April, indicating that companies are cutting production amid slowing demand and high price pressures.
The indicator decreased by 1.6% in monthly terms after rising by 1.2% in June. Economists polled by The Wall Street Journal had expected a 0.5% decline in industrial production.
Among the growth leaders among the components of the Stoxx Europe 600 indicator are shares of the German energy company Uniper SE, which are rising in price by 10.5%.
Shares of London Security PLC are down 4.8%. The British fire protection company cut its pre-tax profit in the first half of the year amid rising costs due to inflationary pressures.
ASOS PLC added 1.6%. The British retailer is forecasting FY22 revenue and earnings in line with analysts’ expectations, but said August sales were weaker than expected.
