European stock markets close higher after European Central Bank maintains interest rates
Stoxx 600 rose 0.82% and DAX advanced 1.36%, on a day of monetary decision in Europe and third quarter balance sheets in the spotlight.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
European stock markets closed higher on Thursday (10/29), in a session marked by the decision of the European Central Bank (ECB) to maintain interest rates and the third quarter earnings season. According to Money Times, the Stoxx 600 rose 0.82%, to 649.43 points, while the DAX, in Frankfurt, advanced 1.36%, to 26,052.75 points.
Performance was not uniform across the main indices. Also according to Money Times, the FTSE 100, in London, gained 0.26%, at 10,722.07 points, and the CAC 40, in Paris, remained stable, at 7,970.00 points.
The ECB's decision was expected to be maintained. According to Times Brasil, investors already expected the institution to maintain interest rates, which reduces the weight of the decision as a surprise factor. According to CNBC, the rate was maintained at 2.5%, at a time when inflation is rising in the euro zone.
The situation gains context with the Federal Reserve (Fed), which maintained interest rates on Wednesday (10/28), according to Times Brasil. With the two large central banks at a standstill, the debate over the next step in monetary policy remains open, and the market is starting to look more closely at inflation data.
CNBC also listed the headline that Lagarde would anticipate leaving the presidency of the ECB, but the available excerpt does not provide details, so the topic is not delved into in depth in this report.
During the earnings season, Times Brasil highlighted Shell, Airbus and Lloyds, and reported that Shell and Airbus shares rose after the results were released. At pre-opening, at 6:30 am (Brasília time), the Stoxx 600 registered an increase of 0.45%, at 647.02 points, with London, Paris and Frankfurt on the rise and Milan and Madrid falling.
What changes for the investor
For those who follow interest rates and exchange rates, the message from the European session is to pay attention to the rate scenario. The ECB's maintenance, coupled with rising inflation in the euro zone, keeps interest rates at the center of discussions about the next monetary policy moves. For Brazilian investors, the performance of European stock markets acts as a thermometer of global risk appetite, a factor that usually influences local assets and the exchange rate of the dollar. The earnings season reminds us that, on days like this, the individual results of companies like Shell and Airbus can weigh more than the movement of the indices.
Automatically translated from Portuguese.
