Major European stock indexes closed higher on Friday, recording a fifth straight month of gains for the most part, as investors expected interest rate cuts in the United States and reacted well to progress in peace negotiations in Ukraine. Intraday trading volumes were low due to the Thanksgiving holiday in the US yesterday and a shorter trading session on US stock exchanges today.
At the close, the Stoxx 600 index – the average of European stock exchanges – rose 0.28%, to 576.59 points. During the week, it increased by 2.58%, and during the month, it increased by 0.84%.
The FTSE 100 index on the London Stock Exchange rose 0.27% to 9,720.51 points, and the DAX index in Frankfurt gained 0.25% to 23,828.25 points. The CAC 40 index in Paris advanced 0.29% to 8,122.71 points. During the week, the stock exchanges achieved an increase of 1.90%, 3.19%, and 1.76%, respectively. In the month, the FTSE rose 0.19%, the CAC rose 0.05%, while the DAX fell 0.62%.
In the UK, Jim Reed of Deutsche Bank comments: Despite the slight improvement in sentiment, markets are still reacting to the budget approved this week, with many structural problems likely not to be resolved, especially with most tax increases concentrated along the fiscal horizon. “There are concerns that the budget has only bought time for the UK’s finances, rather than putting it on a permanently sustainable path,” he says.
In the macroeconomic scenario, retail sales in Germany disappointed expectations and fell by 0.3% in October compared to September. The result was lower than the average estimate of market participants, who expected growth of 0.2%. The Consumer Price Index fell 0.2% in November compared to October, according to a preliminary reading released on Friday.
In France, the CPI rose by 0.8% in November on a monthly basis, while GDP in the third quarter grew by 0.5%. On the data front, consumer inflation expectations in the euro zone for next year rose to 2.8% in October, from 2.7% in September. Average estimates over the medium and long term remained unchanged.