(News Bulletin 247) – The European stock markets are advancing quite significantly (+0.6% in London, +0.9% in Frankfurt and Paris) this Friday at the end of the morning, against a backdrop of data considered to be rather encouraging on the side of the inflation in the euro area.
The zone’s annual inflation rate is indeed estimated at 5.5% in June 2023, thus decelerating sharply after the 6.1% increase over one year which was observed in May, according to a rapid estimate published by Eurostat.
‘The development of underlying inflation, which rose from 5.3% in May to 5.4%, is more important for the outlook for monetary policy’, Capital Economics tempers, although this rate has proved slightly below consensus.
‘Overall, nothing in this press release would deter the ECB from raising its rates by another 25bp in July’, continues the London office, which also sees ‘a good chance that another hike will follow in September’.
Another major data of the session, the GDP of the United Kingdom increased by 0.1% in the first quarter of 2023 compared to the previous quarter, according to the national statistics office which therefore confirms its first estimate published in May.
On the value front, adidas and Puma each gained about 2% in Frankfurt, the day after the publication of the results of their American peer Nike, which showed solid growth in revenues (+8% excluding currency effects) on its last trimestre.
Engie also rose by 2% in Paris, the energy group having revised upwards its profit targets for the year 2023, a revision ‘mainly linked to the solid results recorded by GEMS (Global Energy Management & Sales)’.
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