European time on Thursday, most European stock markets closed higher, investors digested the key to corporate earnings and the Bank of EnglandcurrencyPolicy decision.
The European Stoxx 50 index closed at 4160.74 points, up 15.84 points or 0.38% over the previous trading day;
The British FTSE 100 Index closed at 7120.43 points, down 3.43 points or 0.05% from the previous trading day;
The French CAC40 index closed at 6781.19 points, an increase of 34.96 points or 0.52% from the previous trading day;
The German DAX30 index rose 52.54 points on the 5th, or 0.33%, to close at 15,744.67 points.
The Bank of England announced the latestinterest rateResolution, announcing the maintenance of the benchmarkinterest rateAt 0.1% unchanged, with 7 votes in favor and 1 vote against maintaining the total size of asset purchases at 895 billion pounds, in line with market expectations.
The Bank of England maintains 2021GDPThe growth rate is expected to remain unchanged at 7.25%, and the 2022 GDP growth rate is expected to be raised to 6%, which was previously expected to be 5.75%. Raise the GDP growth forecast for 2023 to 1.5%, compared with the previous forecast of 1.25%.
The Governor of the Bank of England Bailey said in a speech that the economy is expected to return to 2019 levels this year. Measured by historical standards, the increase in inflation is significant. The question is whether the increase in inflation is temporary. “Our view is that as demand continues to shift to the service industry, etc., the pressure will ease.” The Monetary Policy Committee will “focus on the medium-term outlook for inflation, not on possible temporary factors.” If economic development is in line with expectations, it may be necessary to “tighten slightly” monetary policy.
The Bank of England’s lower limit on interest rates does not have a fixed number, and it is useless to treat a certain number as the effective lower limit of interest rates. Reasons for the bank’s substantial upward revision of its inflation forecast include supply chain issues, commodity prices, labor market friction, etc. There is “sufficient evidence” that the inflation spike will be temporary.
The French Constitutional Committee approved the “Health Pass” bill submitted by the government on the same day, retaining most of the bill. In response to the new round of the new crown epidemic, the French government submitted the “Health Pass” bill to the parliament in July. The content mainly includes the expansion of the “Health Pass” to restaurants and bars and other places, and medical professionals must be vaccinated and new crown virus. Compulsory isolation of patients with positive test results, etc.
Financial reports continue to lead the European market’s popularity, Siemens, Adidas,Merck(Merck), Bayer (Bayer), United São Paulo (Intesa Sanpaolo) and other major companies announced quarterly earnings on Wednesday.
Due to increased demand for laboratory equipment and supplies for the development of new coronavirus treatments and vaccines, pharmaceutical giantsMerckThe company’s (Merck KGaA) second-quarter profit exceeded expectations, and its stock price closed up 6.7%.
French agricultureCreditBank(Credit Agricole) Profit for the quarter also doubled, from 954 million euros in the same period last year to 1.97 billion euros ($2.33 billion). This increase is attributed to the government’s support plan for the economy and the reduction of non-performing loan charges related to the epidemic. The bank’s shares fell 0.2%.
Diagnostics group Eurofins shares rose 10.7%, leading the pan-European Stoxx 600 index after the company announced record first-half earnings and raised its full-year forecast.
German biotech giant Bayer (Bayer) shares fell 7.3%, leading the decline in European blue chip stock indexes. Bayer failed to meet its expectations for the second quarter due to rising production costs and exchange rate effects.
(Article source: FX168)
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