04/07/2024 – 12:59
European stock markets closed higher on Thursday, the 4th, amid renewed expectations of interest rate cuts in developed economies. Without the reference of American markets, closed for the Independence Day holiday in the United States, trading fluctuated without much conviction, on the day of elections that should change the government of the United Kingdom.
In London, the FTSE 100 index closed the session up 0.86% at 8,241.26 points. Barclays shares rose 2.13% after the bank announced the sale of its German financing subsidiary to Austrian lender Bawag.
Polls indicate that the Labour Party will win a historic majority in Parliament after 14 years of Conservative rule. The result would see party leader Keir Starmer replace British Prime Minister Rishi Sunak in the role.
For Swissquote, an eventual Labour victory would be positive for stocks and the pound. “UK small and mid-sized stocks are likely to benefit more from a Labour victory than the FTSE 100, which is mainly exposed to global market conditions,” it predicts.
On the other side of the English Channel, the CAC 40 index in Paris rose 0.83% to 7,695.78 points. There, expectations are for the second round of legislative elections, which will take place on Sunday. Recent polls suggest that the far right will not be able to form an absolute majority in the National Assembly.
In Frankfurt, the DAX rose 0.43% to 18,453.24 points. Automakers were in the red for much of the session after the European Union announced provisional tariffs on electric vehicles from China. The measure inspires fears of possible retaliation from the Asian country.
In Milan, the FTSE MIB advanced 0.77% to 34,106.01 points. In the Iberian Peninsula, the Ibex 35 in Madrid rose 0.13% to 11,071.10 points. The PSI 20 in Lisbon gained 0.25% to 6,681.29 points.
Grifols shares rose 1.90% in Madrid after the Spanish pharmaceutical company announced a new chief financial officer to try to reassure investors after being accused of manipulating financial statements. Prices are preliminary. *With information from Dow Jones Newswires.
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