European stock markets close lower, with growing uncertainty about a smooth landing in the region

European stock markets closed lower this Tuesday, 9th, in a context of growing uncertainty about the capacity of the region's main economies to achieve a soft landing, a phenomenon in which inflation is controlled without inducing a contraction in activity.

Germany's industrial production had an unexpected drop of 0.7% in November compared to October, according to data reported in the morning.

For Commerzbank, along with retail performance, the data points to a contraction in the German Gross Domestic Product (GDP) in the fourth quarter of 2023. “The starting point for the new year has deteriorated”, says the bank.

In this scenario, Frankfurt's DAX index fell 0.17%, to 16,688.36 points. Bank shares were among the negative highlights in German business.

At the beginning of this year, stock markets have returned to the rally that marked the end of 2023, given the expectation of aggressive monetary relaxation from the world's main central banks.

This Tuesday, the head of the European Central Bank (ECB) Mario Centeno stated that interest rate cuts are closer than expected. “We don’t need to wait until May to make a decision,” he said.

Even so, the CAC 40 index, in Paris, fell 0.32%, to 7,426.62 points. In London, the FTSE 100 fell 0.13%, to 7,683.96 points, while the FTSE MIB, in Milan, fell 0.53%, to 30,408.78 points.

In Madrid, the Ibex 35 fell 1.37%, to 10,068.90 points. Grifols shares fell 27.39%, after the Spanish pharmaceutical company was accused of manipulating corporate balance sheets. In Lisbon, the PSI 20 dropped 0.27%, to 6,461.02 points. Quotes are preliminary.