Euro zone shares hit near one-year high on hopes of rate hike pause
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Euro zone shares jump 1.8%
Real estate, tech stocks lead gains
ECB promises one more 50 bps rate hike
BoE signals rates near peak
Infineon rises on upbeat profit margin outlook
Updates to market close
By Amruta Khandekar and Ankika Biswas
Feb 2 (Reuters) -Euro zone shares hit their highest level in nearly a year on Thursday, as hawkish messages from the European Central Bank (ECB) failed to derail investor hopes the global rate hiking cycle was close to an end.
A widely watched gauge of euro zone stocks .STOXXE closed up 1.8% at its highest since Feb. 18 last year, while the broader STOXX 600 .STOXX index rose 1.4%.
The ECBraised interest rates by 50 basis points on Thursday and explicitly signalled at least one more hike of the same magnitude next month after which it would evaluate the subsequent monetary policy path.
The ECB struck a more hawkish note compared to commentary by the U.S. Federal Reserve and the Bank of England which was largely perceived as dovish.
However, analysts pointed out the ECB's comments did not provide any new hawkish surprises and investors were still hopeful the hiking cycle would end soon, even after President Christine Lagarde pushed back against the narrative.
"Even with that attempt (by the ECB)at being very overtly hawkish and strong in their determination, the market is still not fully buying it," said Craig Erlam, a senior market analyst at OANDA.
"It seems investors are determined that inflation is going to continue to fall in a significant and sustainable way that will allow for central banks to not pursue an as aggressive tightening cycle as they would like the markets to currently believe."
The Fed on Wednesday delivered a widely expected 25basis point rate hike and while the U.S. centralbank projected further tightening thisyear, investors took a dovish cue from remarks by Fed Chair Jerome Powell, who made repeated references to "disinflation."
The Bank of England also signalledthe tide was turning in Britain's battle against high inflation.
The comments were a major boost to equity markets, which have rallied this year after being pummeled in 2022 by the central banks' aggressive rate hikes.
London's blue-chip FTSE 100 rose 0.8% while Germany's DAX index .GDAXI jumped 2.2%.
Rate-sensitive real-estate stocks .SX86P were the top gainers on the STOXX 600 on Thursday, up 6.8%, while technology stocks .SX8P hit their highest since March.
Banks .SX7E, whose margins usuallybenefit from rising interest rates, tumbled from near one-year highs touched earlier in the session and were last down 0.7%.
Among companies reporting results, Microchips supplier Infineon IFXGn.DE gained 8.0% on lifting its full-year profit margin forecast.
French software maker Dassault Systemes DAST.PA rose 12.4% on a strong 2023 revenue growth forecast, while Spain's Santander SAN.MC gained 5.7% on reporting an annual growth of 1% in fourth-quarter net profit.
ECB hikes again and signals more to comehttps://tmsnrt.rs/3wT3GJT
Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; additional reporting by Bansari Mayur Kamdar; Editing by Janane Venkatraman, Sriraj Kalluvila and Chris Reese
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
