(News Bulletin 247) – European stock markets are recovering (+0.3% in London and Paris, +0.6% in Frankfurt), the day after a session at half mast with the additional tightening announced by the Bank European Central on its monetary policy.
As a reminder, its board of governors decided to raise its three key rates by 25 basis points, estimating that ‘headline inflation has come down in recent months, but the underlying pressures on prices remain strong’.
“Inflation has not yet fallen into line but the tightening of credit conditions is weighing on domestic demand and ultimately on prices,” reacted Bruno Cavalier, economist at Oddo BHF.
In addition, the ECB has indicated that it plans to end reinvestments under the asset purchase program (APP) from July 2023. The decline in the APP portfolio will amount to 15 billion euros per month in average until the end of June.
All eyes can now turn to the US employment report for the month of April, which will be released in the early afternoon. A good omen, the ADP firm surprised positively on Wednesday by announcing the creation of nearly 300,000 private jobs.
This morning, operators took note, for the month of March, of a 1.2% drop in retail sales in the euro zone, a 1.1% drop in French industrial production and a 10.7% plunge in German industrial orders.
On the front of the business publications of the day, they welcome the air carrier IAG (+3% in London) and especially the supplier of sporting goods adidas (+8% in Frankfurt), but abandon the house of winter clothing Moncler (-2% in Milan).
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
