European markets closed mostly higher on Monday, with investors looking to pick up stocks despite weak inflation and GDP data.
The mood was a bit cautious at times as markets awaited the Federal Reserve’s monetary policy announcement on Wednesday. The US central bank, which meets on Tuesday and Wednesday, is expected to raise interest rates by another 75 basis points – the fourth hike in a row – to combat rising inflation.
The Bank of England, which is due to announce its policy on Thursday, is also likely to raise rates by 75 basis points.
The pan-European Stoxx 600 index rose by 0.35%. Britain’s FTSE 100 rose 0.66%, Germany’s DAX rose 0.08% and France’s CAC 40 was 0.1% lower. The Swiss SMI rose 0.52%.
Among other markets in Europe, Austria, Belgium, Denmark, Greece, Iceland, Ireland, the Netherlands, Norway, Poland, Portugal, Spain and Turkey closed higher.
Sweden finished weakly, while the Czech Republic, Finland and Russia finished flat.
In the UK market, IAG rose about 5.5%. Centrica and Natwest Group gained 4.75% and 4.4% respectively.
Flutter Entertainment, Coca-Cola, BT Group, Pershing Square Holdings, Sainsbury (J), Vodafone Group, Lloyds Banking Group, Reckitt Benckiser, Kingfisher, Rolls-Royce Holdings, BP and Prudential gained between 1.5% and 3%.
Intertek Group fell by 2.8%. Croda International, Mondi, RS Group and Halma lost between 1 and 1.6%.
In Paris, Faurecia, Unibail Rodamco, Vivendi, Accor, Sanofi, Societe Generale, Pernod Ricard, L’Oreal, Publicis Groupe, ArcelorMittal, Danone, Valeo and Atos rose between 1 and 2.6%.
Air France-KLM fell by almost 4%. Capgemini fell by about 3%. Schneider Electric, Dassault Systemes, Sodexo and LVMH lost between 1.4 and 2%.
In the German market, Fresenius Medical Care rose more than 6% despite the company cutting its FY22 profit forecast. The company said it expects net income attributable to shareholders to decline in the low-teens to mid-twenties percentage range in 2022.
Fresenius gained about 5.5%. E.ON, Deutsche Wohnen, Continental, Vonovia, Bayer and Linde were up 1 to 2.3%.
Zalando is down about 4%. Puma, Infineon Technologies, Merck, Deutsche Bank and MTU Aero Engines fell between 1.25 and 2.5%.
Flash Eurostat data showed eurozone inflation accelerated further to a new record high in October, rising more than expected to 10.7% for the month from 9.9% the previous month. It was predicted that the rate would rise to 10.2%.
Core inflation, excluding energy, food, alcohol and tobacco, rose to 5% from 4.8% in the previous month. It was predicted that the rate would not change at the level of 4.8%.
The harmonized index of consumer prices in October increased by 1.5% compared to the previous month.
Other Eurostat data showed the euro zone economy it expanded at a slower pace in the third quarter, with gross domestic product rising 0.2% sequentially, slower than the 0.8% increase seen in the second quarter. Economists predicted an increase in the quarterly interest rate to 1%.
Annual economic growth more than halved to 2.1%, as expected, from 4.3% a quarter ago.
The Destatis report showed that retail sales in Germany unexpectedly rose in September, increasing by a real 0.9% month-on-month, reversing a revised 1.4% drop in August. Economists predicted a drop of 0.3%.
Retail sales in Switzerland rose for the fourth month in a row in September, albeit at a slower pace than expected, data from the Federal Statistics Office showed.
Adjusted for sales days and holidays, retail sales rose 3.2% year-on-year in September, faster than a revised 2.1% rise in August. This is slightly below the 3.3% growth expected by economists.
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