01/22/2024 – 6:29
By Sergio Caldas
São Paulo, 01/22/2024 – European stock markets are trading higher this Monday morning, supported by recent favorable winds from Wall Street, while investors await an interest rate decision from the European Central Bank (ECB), which will be known in the next days.
At around 6:10 am (Brasília time), the pan-European Stoxx 600 index advanced 0.61%, to 472.08 points.
On Friday (19), the S&P 500 and the Dow Jones reached record levels and the Nasdaq reached its highest level in two years, driven by a rally in chipmakers and other major US technology stocks.
With today's agenda empty, attention this week is focused on the ECB's monetary policy announcement, on Thursday (25). The forecast is that the monetary authority will leave its interest rates unchanged for the third time in a row. Last week, however, ECB President Christine Lagarde signaled that the first rate cut would likely come during the European summer.
Also on Thursday, the US releases preliminary figures on the Gross Domestic Product (GDP) and PCE inflation for the fourth quarter of 2023, which should influence expectations for the possible downward trajectory of US interest rates this year. At the end of last week, bets became that the first interest rate reduction in the US will come in May, and no longer in March, according to the CME Group monitoring tool.
At 6:26 am (Brasília time), the London Stock Exchange rose 0.21%, the Paris Stock Exchange increased 0.59% and the Frankfurt Stock Exchange gained 0.53%. Those in Milan and Madrid had increases of 0.12% and 0.83%, respectively. As an exception, Lisbon fell 0.11%.
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