11/23/2023 – 14:00
European stock markets closed higher on Thursday, the 23rd, after the minutes of the European Central Bank’s latest monetary policy meeting reinforced the monetary authority’s concern about economic growth in the euro zone and supported the end of the tightening cycle. . This Thursday, the holiday in the United States also removed liquidity from the markets, on a day when the stock exchange was also closed in Tokyo.
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.
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 Thursday’s meeting show that the eurozone economic bloc has already reached interest rate peaks and could cut interest rates much earlier than expected, although leaders should not assume these plans soon, reinforcing the rhetoric that… 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 analysis from Hargreaves Lansdown, NatWest is “poised to benefit from some structural tailwinds, which should boost sector earnings over the medium term” and improve the value of its shares, which have suffered badly in 2023.
Expectations indicate that the British government will begin selling its properties at this time, awaiting some improvement in the value of shares, as it confirmed that it will wait for “favorable” conditions to sell 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%.
