Original Source: investir.lesechos.fr
The European stock markets are sensitive to economic indicators as they respond to shifts in investor sentiment and macroeconomic trends. Recent data releases, particularly relating to inflation rates and credit growth in the eurozone, are closely monitored since they can significantly influence central bank policies. The ECB’s monetary measures, specifically adjustments to interest rates, play a crucial role in shaping economic activity across member nations. With broader factors like the budgetary debates in France adding layers of complexity, market volatility is often magnified in a dynamic trading environment.
The European stock markets opened with a vibrant pulse on Thursday, buoyed by investors eager to embrace fresh economic indicators. In the City of Lights, Paris’s CAC 40 climbed by 0.42% to reach 7,172.76 points by 08:05 GMT. Meanwhile, the German DAX surged by 0.59%, and London’s FTSE brushed up by 0.2%. The pan-European FTSEurofirst 300 increased by 0.47%, with the EuroStoxx 50 and Stoxx 600 following closely at 0.78% and 0.49% respectively. As trading volumes remained subdued—thanks to the American markets taking a breather for Thanksgiving—investors turned their gaze toward forthcoming economic data. The anticipated growth in private sector credit in the eurozone for October promises to be a silver lining, potentially bolstered by the European Central Bank’s (ECB) recent cut in interest rates. This recovery could herald a revival of European economic activity that has languished for two long years. Furthermore, the inflation figures from Germany for November stand as a crucial signal for market expectations. Should inflation unexpectedly spike in the eurozone’s powerhouse, it may compel the ECB to temper its rate cuts, which markets currently hope to see drop by 25 basis points at the subsequent five meetings. Amid the uncertainty surrounding France’s 2025 budget vote, volatility looms over both French and broader European assets, with the spread on 10-year bonds between France and Germany hitting a 12-year peak on Wednesday. On a stock-specific note, Rémy Cointreau exhibited considerable volatility, dipping by 1.2% after a sharp initial decline of 4%, following news of a smaller-than-expected drop in its operating profit for the first half of the year.
(Scribed by Corentin Chappron, edited by Augustin Turpin)
