Stock indices of the largest countries of Western Europe in the course of trading on Wednesday show a positive mood on the data on weakening inflation in the UK and the eurozone.
The composite index of the largest European companies Stoxx Europe 600 increased by 0.4% to 462.45 points by 12:02 Q2.
German indicator DAX from the market opening rose by 0.2%, French CAC 40 – by 0.6%, British FTSE 100 – by 1.5% (to the maximum for a month). Italian FTSE MIB and Spanish IBEX 35 added 0.15% each.
Consumer prices in the UK in June rose by 7.9% in annualized terms – this is the minimum rise since March 2022. Inflation thus slowed from 8.7% in May.
The consensus forecast cited by Trading Economics had called for inflation to weaken to 8.2% in June.
Consumer price growth in Britain in monthly terms slowed to 0.1% in June from 0.7% in May. Analysts had expected an increase of 0.4%.
Consumer prices in the euro zone rose at a 5.5% annualized rate in June, according to final data. This is the weakest rise since January last year. Inflation was 6.1% in May.
The June figure matched both the preliminary estimate and the average forecast of experts.
Dutch manufacturer of chip equipment ASML Holding NV reduced net profit by 1% in the second quarter, but improved its revenue growth forecast for the current year. Quotes of the company’s shares are up 0.5%.
The price of securities Kering SA soared by almost 6%. The French holding company, which owns famous fashion brands, announced the departure of Gucci CEO Marco Bizzarri, who held the post since 2015. The brand will be led on an interim basis by group managing director Jean-François Palus.
Swedish access control systems maker Assa Abloy increased its second-quarter net profit by 13.3% to 3.57 billion kronor ($349 million) and revenue by 17% to 34.47 billion kronor. Analysts polled by FactSet had on average forecast 4.13 billion crowns and 33.68 billion crowns, respectively. The company’s shares are up 0.2%.
Stock prices of oil producers are also rising: BP Plc and Shell – by 1.1%, TotalEnergies – by 0.5%.
Meanwhile, the value of Volvo is down 1.7%. The Swedish truck maker reported a 5% rise in deliveries in the April-June quarter, but new orders fell 10%.
Antofagasta shares are down 1.1%. The company increased copper production by 2.5% in the second quarter relative to January-March to 149.6 thousand tons. However, the forecast for the whole current year was lowered to 640-670 thousand tons from previously expected 670-710 thousand tons.
Unemployment in 19 countries of the eurozone in August did not change compared to July and amounted to 6.6%, which is the lowest figure in the entire history of its calculation, according to the data of the Statistical Office of the European Union.
Analysts also predicted that the indicator would remain at the same level, according to Trading Economics.
By comparison, unemployment was 7.5% in August 2021.
The number of unemployed in the euro area last month amounted to 10.966 million people, having decreased by 30 thousand people over the month.
Youth unemployment (population under 25) dropped to 13.9% from 14% in July. The number of unemployed in this age category decreased by 17 thousand compared to the previous month, to 2.136 million people.
The highest unemployment rate among European countries was recorded in Spain (12.4%) and Greece (12.3%). The lowest unemployment rate was recorded in the Czech Republic (2.4%), Poland (2.6%) and Germany (3%).
In the European Union, unemployment remained at 6% in August (6.8% in August 2021). In total, 12.921 million unemployed people were registered in the bloc, which is 52 thousand less than in July.
Consumer prices (HICP index) in the euro area in September increased by 10% in annual terms, according to preliminary data from the Statistical Office of the European Union.
Thus, inflation accelerated compared to 9.1% in August and updated the maximum since the beginning of the calculations.
Analysts polled by Trading Economics had expected a less significant increase of 9.7%.
The current inflation rate is five times the European Central Bank’s (ECB’s) target of 2%.
Consumer prices excluding food and energy increased by 4.8% in annual terms in September compared to 4.3% in the previous month.
The cost of energy resources soared by 40.8% (in August – by 38.6%). Food, alcohol and tobacco rose in price by 11.8% (by 10.6%), industrial goods – by 5.6% (by 5.1%), services – by 4.3% (by 3.8%) .
Consumer prices excluding food and energy (CPI Core index) this month increased by 4.8% in annual terms against 4.3% in August.
The growth of consumer prices in the euro area in September amounted to 1.2% compared to the previous month. In August, this figure increased by 0.6%.
The lowest inflation was recorded in France (6.2% in annual terms), Malta (7.3%), Finland (8.4%) and Ireland (8.6%). The most significant rise in prices occurred in Estonia (24.2%), Latvia (22.4%) and Lithuania (22.5%).
Consumer prices in the euro area in June increased by 8.6% in annual terms, according to the final data of the Statistical Office of the European Union.
The indicator is the maximum since the beginning of the data calculation.
Thus, inflation in the region accelerated compared to 8.1% in May.
The final data coincided with the preliminary ones. Analysts polled by Trading Economics also did not expect a revision in the preliminary estimate.
The growth of consumer prices compared to the previous month amounted to 0.8%, as in May.
Inflation is over four times the European Central Bank’s (ECB’s) target of 2%. The next meeting of the ECB will take place on Thursday, and it is likely that as a result of it, key interest rates will be raised immediately by 50 basis points, and not by the expected 25 bp.
According to Eurostat, energy resources jumped in price by 42% compared to June last year. Food, alcohol and tobacco increased in price by 3.7%, manufactured goods – by 4.3%, services – by 3.4%.
Consumer prices excluding food and energy rose 3.7% year-on-year last month from 3.8% in May.
In the European Union, inflation in June accelerated to 9.6% in annual terms from 8.8% in May.
The lowest inflation in the EU was recorded in Malta (6.1%), France (6.5%) and Finland (8.1%), the highest – in Estonia (22%), Lithuania (20.5%). ) and Latvia (19.2%).
