On Thursday, European stock markets experienced an upward atmosphere as investors digested both the interest rate decision by the European Central Bank (ECB) and a major inflation report from the latest U.S. inflation data. The pan-European Stoxx 600 index provisionally ended the session up 0.51%, thus setting it up for a weekly gain.
Automobile stocks recovered from early losses to close up 1.27%, with Stellantis leading gains after a strong afternoon rally, closing up 9.18%. The CEO told Reuters the company is planning to bring back models such as the Jeep Cherokee
After the ECB decided the rates to keep rates on hold, the euro appreciated 0.3% against the U.S. dollar move largely anticipated by traders. Investors had the latest US inflation numbers to digest as well, signaling that consumer prices rose in accordance with expectations to show a year-on-year growth of 2.9% in August. European stocks show a calm after the political selloff in France
Following the latest US inflation data release, market bets on any rate-cut move by the Fed wrought little in the way of change: the CME’s FedWatch
The analysts were divided on the chances of the ECB implementing another rate cut this year, now that it had cut its key rate from 3% to 2% in 2025. ECB’s own assessment remains broadly unchanged, in its latest staff macroeconomic projections, expecting headline inflation of 2.1% on average in 2025 and 1.7% in 2026. According to Yael Selfin
