Market: recovers from Christine Lagarde’s words


(CercleFinance.com) – European stock markets are recovering timidly (+0.4% in London and Frankfurt, +0.6% in Paris), the day after a difficult session against a background of news confirming the prospect of price increases rate by the European Central Bank.

‘The latest ECB minutes showed that a large number of members had initially spoken in favor of a 75bp hike, although they eventually agreed to a 50bp hike’ , recalls Deutsche Bank.

The latter also points to remarks made by Christine Lagarde in Davos, the President of the ECB having judged that inflation in the euro zone was still ‘far too high’ and advised those hoping for rate cuts in the future to ‘ reconsider their positions.

The data on the inflation front are however rather reassuring this morning, since the rise in industrial producer prices in Germany slowed for a third month in a row in December, to +21.6% on an annual basis.

‘The upward pressure on consumer prices from the upstream production stages is therefore easing. However, higher wage increases only reinforce the next wave of costs,’ warns Commerzbank.

Other data released in the morning, the volume of retail sales in the United Kingdom fell by 1% in December 2022, after a fall of 0.5% in November (revised compared to a fall of 0.4% indicated in the first reading).

In the news of the values, the operators sanction the annual results in sharp decline of Ericsson (-6% on the OMX), but welcome the sale by ABB (+1% in Zurich) of its electrical conversion division and a program buyback of Generali shares (+2% in Milan).

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