On Thursday, the European stock markets showed an overall increase, with the exception of the UK’s exchange, as the annual inflation rate is slowing down. The Eurostat announced that the annual inflation rate in the euro area has eased to 8.6% in January, a decrease from December’s year-on-year gain of 9.2%. As a result, investors are hopeful that the European Central Bank will also slow down its interest rate increases this year.
The STOXX Europe 600, which represents about 90% of the European market capitalization in 17 countries, gained 0.06%, or 0.28 points, to finish at 462.50. Germany’s DAX 30 rose 0.49%, or 75 points, to close at 15,475, while France’s CAC 40 increased by 0.25%, or 18 points, to reach 7,317. Italy’s FTSE MIB outperformed, soaring by 0.65%, or 176 points, to 27,277. Spain’s IBEX 35 followed suit, adding almost 0.64%, or 59 points, to end the day at 9,231. In contrast, the UK’s FTSE 100 fell by 0.29%, or 22 points, to close at 7,907.
In summary, the European stock markets finished higher, except for the UK, as the annual inflation rate has eased. With this development, investors are anticipating a slowdown in the European Central Bank’s interest rate hikes.
