11/29/2023 – 13:54
Most of the main European stock exchanges closed higher this Wednesday, 29th, after the cooling of inflation in Germany strengthened expectations for monetary relaxation in the region. London, however, ended the trading session in the red, partly penalized by oil volatility and risks in the financial sector.
In particular, the DAX index, a reference in Frankfurt, advanced 1.09% at the close, at 16,166.45 points. According to the German statistics agency, the annual rate of the consumer price index (CPI) slowed to 3.8% in the preliminary reading for October.
The result consolidated bets that the European Central Bank (ECB) will cut interest rates throughout 2024. The institution’s director, Yiannis Stournaras, said he expected the first reduction in the base rate in the third quarter of next year.
In this environment, the CAC 40 index, in Paris, rose 0.24%, to 7,267.64 points, while the FTSE MIB, in Milan, gained 1.06%, to 29,688.45 points.
On the other hand, in London, the FTSE 100 fell 0.43%, to 7,423.46 points. Shell and BP shares lost 0.89% and 0.61%, respectively, while speculation about Thursday’s meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+) imposed volatility on commodity prices.
Still in the British market, banks were also among the negative highlights. “The financial sector helped drag the FTSE 100 lower amid speculation about interest rate cuts, given the potential implications for its profitability,” explained AJ Bell.
Among Iberian markets, the PSI 20, in Lisbon, registered an appreciation of 0.02%, at 6,439.50 points. In Madrid, the Ibex 35 increased 0.63%, to 10,066.40 points. Quotes are preliminary.
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