17.06.2024 US
845 day since the barbaric invasion of Ukraine

European Markets Fall Despite Slowdown in US Inflation

European Stock Indices Decline in Response to US Inflation Data and Corporate News

Oleksandr Budariev
Market Quotations
Market Quotations, Illustrative Photo / pixabay.com

Today, European stock exchanges ended the day with a decline in their indices, influenced by the analysis of economic data and corporate messages, reports "Interfax-Ukraine".

The US Department of Labor presented inflation data for November, indicating continued inflationary pressure. The November rise in consumer prices (CPI index) in the US was 3.1% on an annual basis, which is less than the 3.2% in October, but still remains high. Meanwhile, core inflation (Core CPI index), excluding the cost of food and energy, remained at 4%.

The monthly increase in the CPI index in November was 0.1% compared to October, while core inflation (Core CPI) increased by 0.3% against 0.2% in the previous month.

Sima Shah, an analyst at Principal Asset Management, noted that the latest inflation report undermined hopes for a soon reduction in Federal Reserve rates. In her opinion, the slowdown in inflation was insufficient to justify market expectations of a softening in US monetary policy.

The European Stoxx Europe 600 index fell by 0.21%, reaching 472.72 points at the close of trading. Leading national indices also showed a decline: the British FTSE 100 fell by 0.03%, the German DAX - by 0.02%, the French CAC 40 - by 0.11%, the Italian FTSE MIB - by 0.28%, and the Spanish IBEX 35 - by 0.78%.

Data from Germany indicated a decrease in wholesale prices in November by 0.2% month-to-month and by 3.6% annually. The index of economic expectations of investors and analysts in Germany reached a peak since March, rising to 12.8 points. A similar index in the eurozone jumped to 23 points, which is the best result in the last 10 months.

On a corporate level, the British pharmaceutical company AstraZeneca increased its capitalization by 0.8%, thanks to news of the acquisition of the American competitor Icosavax for $1.1 billion.

Renault's securities lost 1% in value after announcing the sale of 5% of Nissan Motor Co. shares, which will lead to an accounting loss of up to 1.5 billion euros. The French energy company TotalEnergies reported a 1.1% decrease in its market value after acquiring three startups in the field of power generation.

Unilever shares fell by 0.2% amid the start of an investigation by the British Competition and Markets Authority regarding possible exaggeration of the eco-friendliness of its products.

Italian Banco BPM, in turn, reported a 1.2% increase in its shares, having published a new strategic plan until 2026. The bank expects to receive 6 billion euros in net profit from 2023 to 2026 and to allocate 4 billion euros for shareholder rewards.

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