European stock markets rise with ECB maintaining interest rates, but banks weigh in on Madrid

European stock markets advanced this Thursday (29), after the European Central Bank maintained interest rates and while quarterly balance sheets gained space on investors' agendas. According to Times Brasil, most of the continent's indices closed higher, with Madrid as an exception, pressured by bank shares.

The ECB's decision comes one day after the Federal Reserve kept its interest rate unchanged, on Wednesday (28). With both institutions on pause, the European market reacted positively. Investing.com highlighted that the continent's stock markets are close to almost two-month highs, with the ECB maintaining rates.

Numbers help to size the movement. According to Times Brasil, the DAX, in Frankfurt, rose 1.36%, to 26,052.75 points, and the CAC 40, in Paris, advanced 1.05%, to 7,970.00 points. In London, the FTSE 100 gained 0.26%, to 10,722.07 points. Milan rose 0.36%, to 50,002.36 points, and Lisbon, according to PSI 20, added 0.80%, to 9,319.57 points.

In the opposite direction, the Ibex 35 fell 0.11%, to 18,862.30 points, with banking shares weighing on the Spanish index. On balance sheets, Shell and Airbus rose after releasing their quarterly results, while Lloyds was also on investors' radar. Earlier, at 6:30 am (Brasília time), the Stoxx 600 advanced 0.45%, to 647.02 points, and Milan and Madrid were falling at that time.

In the energy market, oil fell, amid the possibility of resuming diplomatic negotiations between the United States and Iran. In the same coverage, Times Brasil carried the headline that Lagarde announces her departure, without detailing the conditions of the decision in the text.

What is at stake is the combination of interest rates at a standstill on both sides of the Atlantic, falling oil and a possible transition in the ECB presidency. For those who defend fiscal responsibility and a predictable environment, the main point is clarity about the next steps of monetary policy and the leadership of the European central bank.

What changes for the investor

For those who follow the stock market, interest rates and the dollar, the scenario suggests fewer signs of changes in interest rates in the short term, which puts balance sheets and sectoral readings at the forefront. It is worth observing the performance of Spanish banks, which weighed on the Ibex, and the evolution of negotiations between the USA and Iran, which influence oil. Lagarde's announced departure is an institutional variable to monitor. As the quotes quoted are preliminary, it is most prudent to wait for official closings before drawing conclusions.

Automatically translated from Portuguese.