European markets Mixed amidst ECB Hold adn Inflation Data
European markets presented a mixed picture today, following a decision by the European Central bank (ECB) to hold interest rates steady. The deposit rate remains at 2.0 percent, with the main refinancing rate at 2.15 percent, as the ECB maintains versatility regarding future policy. The ECB also slightly revised its economic growth forecast for the Eurozone upwards to 1.2 percent for 2024, though lowered it slightly for 2026 to 1.0 percent.
Meanwhile, US inflation rose to 2.9 percent in August, perhaps influencing the Federal Reserve’s decision on interest rate cuts next week, with a 0.25 percentage point reduction considered likely, and a 0.50 point cut gaining some probability.
Market highlights:
* Strong Performers: Automotive group stellantis led gains in the Euro-Stoxx-50, rising 9.2 percent. Airbus and Bayer also saw increases of around 2.9 percent. Building material values were boosted by a positive assessment from JP Morgan, with buzzi Unicem up 6.8 percent. Retail stocks led industry gains with a 2.31 percent increase, driven by Inditex (Zara’s parent company) which rose 2.66 percent following a strong second quarter. In London,Fei-representative jumped 12.5 percent, Playtech gained 4.2 percent, and Trainline increased by 12.2 percent.Technip Energies climbed 2.9 percent in France on news of a potential acquisition of the Advanced Materials & Catalysts division of US group Ecovyst.
* Weak Performers: SAP experienced the largest losses, falling 1.74 percent. Hays shares declined 2.2 percent in London after Jefferies downgraded its recommendation, shifting focus to ISS, which saw a 3.9 percent increase.
