Stoxx Europe 600 indicator index is at 505.6 points with a decrease of 0.6 percent, DAX 40 index in Germany is at 19,300 points with a decrease of 0.6 percent and FTSE 100 index in England is at 8,250 points with a decrease of 0.5 percent.
In Italy, the MIB 30 index is traded at 33,063 points, with a 1.1 percent loss, in France, the CAC 40 index is traded at 7,201 points, with a 0.8 percent decrease, and in Spain, the IBEX 35 index is traded at 11,597 points, with a 1 percent decrease.
Global markets remain mixed due to the unclear road map to be followed by the US Federal Reserve (Fed) in the fight against inflation and the impact of increasing geopolitical tensions.
While a negative trend stands out in the European stock markets, with signals indicating a slowdown in economic activity as well as the impact of geopolitical developments, the statements of the members of the European Central Bank (ECB) are also closely followed.
Gabriel Makhlouf, a member of the ECB Governing Council and Governor of the Central Bank of Ireland, stated that he would like to see Eurozone services inflation approach 3 percent from the current level of 4 percent in order to increase the ECB’s confidence that it will reach its general inflation target next year, adding, “Latest data suggests 2 percent in 2025.” “It gives me increasing confidence that we will meet our inflation target, but the stickiness of services inflation and high wage growth leave some room for caution.” he said.
ECB Chief Economist Philip Lane stated that monetary policy should not remain restrictive for too long in order to support the economy, otherwise the economy will not grow sufficiently and this time the problem of low inflation may arise.
On the UK side, Clare Lombardelli, Deputy Governor of the Bank of England (BoE), who made a statement yesterday, stated that the Bank will gradually reduce the policy interest and said that attention should be paid to possible signs of slowdown in the economy.
With these developments, the euro/dollar parity is currently trading at 1.0490, after falling to 1.0450, its lowest level since October 3, 2023, yesterday.
Meanwhile, on the corporate side, the UK Financial Authority (FCA) fined Barclays £40 million for its activities at the height of the 2008-2009 financial crisis.
Today, in the USA, the Fed’s Federal Open Market Committee (FOMC) meeting minutes, as well as new home sales and New York Fed consumer confidence index data will be followed.
