As European scholarships closed higher this Tuesday (17), supported by signs of possible easing geopolitics in the Middle East and data which reinforced monetary easing bets in the United Kingdom. The move came amid reduced liquidity in Asia and weaker performance from New York throughout the morning.
In London, the FTSE 100 closed up 0.79%, at 10,556.17 points. In Frankfurt, the DAX rose 0.82%, to 25,005.34 points. In Paris, the CAC 40 gained 0.54%, at 8,361.46 points.
In Milan, the FTSE MIB advanced 0.76%, to 45,764.07 points. In Madrid, the Ibex 35 rose 0.69%, to 17,970.40 points. In Lisbon, the PSI 20 gained 0.17%, at 9,073.89 points. Quotes are preliminary.
UK unemployment rose to 5.2% and wage growth lost momentum. For Samuel Fuller, from Financial Markets Online, the situation reinforces the possibility of stimulus by the BoE (Bank of England, in English), while ING projects interest cuts in March and June.
Morgan Stanley also highlighted that the market raised the risk perception of impacts from AI (artificial intelligence) in MSCI Europe to 24% of the index.
Consumer inflation in Germany was 2.1% in January, confirming the preliminary measurement. “The general rise in consumer prices intensified at the beginning of the year,” said Destatis, as the country’s statistics office is known.
Among stocks, mining companies put pressure on London, with Antofagasta (-3.6%), Fresnillo (-2.1%) and Anglo American (-2.3%) retreating, reflecting the decline in metals. The industrial metals sector sub-index fell around 2%.
In the opposite direction, BHP advanced 1.6% after announcing a US$4.3 billion agreement for the future sale of silver and a better-than-expected result for the semester, which helped limit losses in the sector. In the tourism sector, InterContinental Hotels rose around 1% after reporting higher annual profit and 5.4% higher revenue.
In the final stretch of trading, Bayer announced an agreement to resolve current and future lawsuits involving Monsanto in the USA. The stock rose about 7.5% in Frankfurt.
