European stock markets closed higher on Tuesday (22) driven by the energy sector and with an eye on recent signals about the future of the monetary policy of the European Central Bank (ECB).
In London, the FTSE 100 rose 1.03%, to 7,452.84 points, while the CAC 40, in Paris, advanced 0.35%, to 6,657.53 points.
In Madrid, the Ibex 35 index rose 1.69% to 8,326.90 points. The DAX index, in Frankfurt, followed the movement and closed up 0.29%, at 14,422.35 points. Finally, on the Lisbon Stock Exchange, the PSI 20 increased by 1.40%, to 5,846.61 points. Quotes are preliminary.
The FTSE MIB, in Milan, closed at a high of 0.96, at 24,590.50 points. According to Capital Economics, Italy’s budget project for 2023 confirms that the new government has maintained its commitment to fiscal responsibility, reducing the turmoil in the markets, “but remains high due to Italy’s large public debt and the prospect of recession and new ECB interest rate hikes”.
Among stocks that stood out in the trading session and increased investors’ risk appetite, are energy companies, in the face of developments in the continent’s crisis. On Tuesday, the European Union released details of its plan to cap gas prices and Bulgaria said it would continue to operate on Russian oil.
Gazprom, for its part, threatens to reduce gas supplies to Moldova from 28 November.
On the London Stock Exchange, Babcock International closed up more than 6%, while Shell rose more than 4%. Basic resources company also showed a good performance in the trading session, with mining companies Rio Tinto and Glencore closing with an increase of more than 2.6%, in the DAX index, and 3.9%, in the FTSE 100, respectively.
Earlier, the Organization for Economic Cooperation and Development (OECD) published that the ECB will have to raise interest rates to 4.25% by the second quarter of 2023 to achieve the 2% inflation target, which increases investor concerns about the pace of growth at the next meeting, which could harm risk assets.
Also this Tuesday, ECB member Robert Holzmann defended a rise of 75 basis points at the next meeting, while fellow institution leader Olli Rehn said that the ECB’s monetary policy should ensure that inflation expectations reach the 2% target. mid-term. President of the Bundesbank and member of the ECB, Joachim Nagel foresees lower increases in the next meetings, but he stressed that there is still a way to go.
Source: CNN Brasil
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