Main markets in Europe extend their winning streak

FRANKFURT, Germany.— This Thursday, the day concluded with gains in the main European markets, highlighting the 1.2% advance of the Madrid Stock Exchange and the rise of the euro, which closed at $1,093.

The euro rises to $1,093

The euro rose this Thursday to $1,093 after the European Central Bank (ECB) left interest rates unchanged for the fourth consecutive time at 4.5%, its highest level since 2001, and has brought forward the return of inflation to its 2% objective to 2025.

The single currency was exchanged at $1.0930 around 16:00 GMT this Thursday, compared to $1.0905 last Wednesday.

For its part, the ECB set the exchange rate at 1.0895 dollars.

The European Central Bank (ECB) met expectations and kept interest rates at 4.5% for the fourth consecutive time, its highest level since 2001, despite the fact that inflation continues to decline in the eurozone.

The organization’s Governing Council, which met today in Frankfurt, also decided to leave unchanged the credit facility – which lends to banks overnight – at 4.75% and the deposit facility – which remunerates excess reserves one day – by 4%.

Regarding the updated macroeconomic perspectives, it has lowered its average inflation forecast for the eurozone to 2.3% in 2024 and 2% in 2025, while it has maintained it at 1.9% for 2026, which will allow the organization to reach its target in this area next year.

Furthermore, during the press conference, the president of the institution, Christine Lagardehas pointed to June as the time when they will have much more data to be able to make a decision on a possible rate cut.

The single currency has been exchanged today in a fluctuation band between 1.0872 and 1.0930 dollars.

The Spanish stock market rises 1.2%

The Spanish stock market returned to February 2018 levels, with a rise of 1.2%, after the European Central Bank (ECB) maintained interest rates at 4.5% and reduced inflation and growth forecasts for this year, which which could lead to a cut in the price of money in the middle of the year.

In the fifth consecutive day on the rise, which has not happened since mid-November 2023, the main indicator of the national market, the IBEX 35, gained 122.4 points, up to 10,319.6, the level at the beginning of February 2018. During the year it accumulates a rise of 2.15%.

Of the large values, Iberdrola rose 2.64%; BBVA, 1.93%; Banco Santander, 1.88%; and Inditex, 0.49%, while Repsol fell 0.21%; and Telefónica, 0.08%.

The DAX 40 rises 0.71%

The main selective of the Frankfurt Stock Exchange, the DAX 40, rose 0.71% this Thursday to a new historical maximum at the close after the European Central Bank maintained interest rates and brought forward the return of inflation to its objective to 2025 Of 2 %.

The DAX 40 closed the session at 17,842.85 points, while the TecDAX technology index advanced 1.05% to 3,485.02 points.

On a business level, the day on the stock market has been marked by the presentation of the 2023 accounts of the airline Lufthansa, the pharmaceutical company Merck and the tire manufacturer Continental, with mixed results.

In the case of Merck, it obtained a net profit of 2,824 million euros in 2023, which represents a decrease of 15.1% compared to a year before, after its sales decreased by 5.6%.

By company, the biopharmaceutical company Sartorius has led the session on the German stock market, after advancing 3.66%, followed by the banking entity Commerzbank (3.27%) and the technology company Infineon (3.07%).

At the opposite extreme was the chemical company Brenntag, which has lost 5.76%, followed by the automobile company Porsche Automobil (-1.24%) and Continental (-1.21%).

The London Stock Exchange rises 0.17%

The London Stock Exchange rose 0.17%, driven by the advance of the fumigation and hygiene services company Rentokil Initial.

London’s main index, the FTSE-100, added 13.15 points to 7,692.46 integers, on a day in which Rentokil Initial led the gains with an increase of 17.67% after presenting its annual results.

In them, a growth in the company’s profits was highlighted, also boosted by the acquisition of the American company Terminix.

In second place was the Anglo American mining company, which grew by 5.09%; and the food technology and online supermarket group Ocado, whose value increased by 4.66%.

On the contrary, among the companies that fell the most this Thursday were the betting company Entain, which fell 4.87%; the bank HSBC Holdings, whose shares lost 3.48%; and telecommunications company Airtel Africa, which decreased by 2.68%.

As for the secondary index, the FTSE-250, it increased 110.76 points, that is, 0.57%, to 19,583.98 units, coinciding with the growth leadership of the online banking services firm Virgin Money, which rose 34.99%.

This data comes on the same day that the financial institution Nationwide Building Society reached an agreement to buy Virgin Money, which, if completed, would result in one of the largest mortgage and savings groups in the United Kingdom.

At the same time, all these results occur on the same day in which the British Minister of the Economy, Jeremy Hunt, recognized that the budgets presented this Wednesday do not offer “quick solutions” to the challenges facing the country, but are part of of “a plan for the long term.”

In the communication of the accounts for the next fiscal year 2024-25, the announcement of a reduction in workers’ contributions to social security stood out, which goes from 10 to 8%.

Milan rises 0.16%

The Milan Stock Exchange closed slightly higher today and its selective index FTSE MIB advanced 0.16%, reaching 33,418.68 points, on a day in which the European Central Bank (ECB) decided to maintain interest rates.

For its part, the general FTSE Italia All-Share index rose 0.17%, to 35,557.17 integers.

During the session, 2,923 million shares changed hands for a value of 3,832 million euros.

In positive territory, the hearing aid manufacturer Amplifon (5.88%), Stmicroelctronics (3.48%), the oil company Saipem (1.94%), the Diasorin laboratories (1.67%), ITalgas (5.29%), the pharmaceutical company Recordati (1.19%) and Ferrari (0.76%), among others.

On the other hand, the worst stoppage was the telecommunications company Telecom Italia, which depreciated by 23.79% due to the doubts raised by the Industrial Plan that aspires to apply until 2026.

Important banking titles also fell such as Banca Popolare Emilia Romagna (1.25%), Mediolanum (1.15%), Banco Popolare Milano (1.08%) and the country’s largest bank, Intesa Sanpaolo (0.52%), as well as the Nexi collection system ( 4.06%).

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