Original title: [European Express] German business data perform well, Bank of England expects to keep interest rates low and European stocks rise
Source: FX168
European stock markets generally rose on Thursday (June 24). Although investors are still worried that global monetary easing will face a contraction, many data show that a steady rebound in the economy has increased market confidence, and technology stocks are also on the Nasdaq in the United States.The index rose 0.7 per cent after closing at an all-time high yesterday.
As of 17:40 Beijing time, the UK's FTSE 100th index, France's CAC index and Germany's DAX index were up 0.29%, 1.12% and 0.88%, respectively.
The pan-European Stoxx 600 index, which rose 0.4% in early trading, fluctuated sharply this week. Wednesday's decline almost erased the gains of the previous two days, as the Fed's mixed message left investors unsure. Whether the central bank will scale back its massive stimulus measures in the face of rising inflation.
However, with the ECB reiterating its loose stance on monetary policy earlier this month, analysts said they did not expect European stocks to slide further. Charalambos Pissouros, senior market analyst at JFD Group, said: "as the ECB insists that now is not the time to consider withdrawing loose monetary policy, we do not expect Wednesday's decline to reverse the outlook for European stocks."
Despite a respite from the rally on Wednesday, the three major US stock indexes are still up more than 1 per cent this week, after the Federal Reserve raised its stock price last week.Inflation is expected and is expected to rebound in the sell-off after raising interest rates in 2023 at the earliest. Fed Chairman Powell reiterated in comments in Congress on Tuesday that inflationary pressures should be temporary and seemed to reassure the market.
Investors are waiting for data on new U.S. jobless claims to be released at 20:30 Beijing time on Thursday to learn about the latest unemployment outlook. In addition, the results of the Fed's annual banking stress test, which examines banks' performance during various hypothetical recessions, are scheduled to be released after the close of trading on Thursday.
In the UK, investors will be watching the latest interest rate decision to be announced by the Bank of England, which is expected to keep interest rates at record lows and maintain its massive asset purchase programme on Thursday. but investors will be watching for signs of policy tightening next year.
Survey data showed that Germany's IFO business climate index rose to 101.8 in June, up from 99.2 in May and slightly higher than economists' expectations of 100.7. Mainly due to improved corporate assessment of the current economic situation, corporate optimism about the recovery in the second half of the year has also increased.
In terms of individual stocks, Tecan Group, a Swiss maker of laboratory instruments, rose 11.3 per cent to an all-time high after it said it would buy Paramit Corp, a US medical device and life sciences instrument group, for $1 billion.
French retailer Love(Carrefour) rose 0.6% after the company said late Wednesday that it was considering a merger or split of its foreign subsidiary.