Shutting down Europe: Buyers and sellers vie for dominance in stock markets

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Mainland stocks ended the session on a mixed note amid growing bets for central bank interest rate moves that weighed on periphery stocks.

“While this does not match the volatility we saw last week, a poorly fought battle between buyers and sellers is taking place amid a declining liquidity environment,” the market chief said. ‘ig.

The pan-European Stoxx 600 rose 0.68% to 465.28, but Milan’s FTSE Mibtel fell 1.03% to 26,328.93 and Madrid’s Ibex 35 fell 0.36% at 8,558.40.

Against the backdrop, Italian and Spanish long-term government debt was under pressure after European Central Bank board member Klaas Knot acknowledged that official short-term interest rates were likely to rise. increase in the fourth quarter.

For her part, in remarks to the European Parliament, her boss, Christine Lagarde, said any hike in interest rates would be gradual.

On the other hand, JP Morgan equity strategists told their clients that the cycle “is far from over.”

“We believe equities still offer a favorable risk-reward ratio and the cycle is far from over. We are looking for further gains in earnings, bottoming in activity in China, after being cautious on the market. space last year, and we expect the Fed not to.” become increasingly hawkish, relative to the current price,” JP Morgan’s Mislav Matejka said in a research note sent to clients.

Meanwhile, in Germany, industrial production fell in December, official data showed, as supply chain bottlenecks and a slump in construction hampered Europe’s largest economy on the end of last year.

The Federal Statistics Office said the country’s industrial production fell 0.3% on the month after an upwardly revised 0.3% increase in November.

In terms of stocks, shares of French automotive group Faurecia rose as the company announced it was targeting sales of more than 33 billion euros in 2025, with an operating margin of more than 8.5% .

Flutter Entertainment rose after reports over the weekend that it was launching a last-minute bid for the UK’s National Lottery operating license.

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