European stocks recorded significant gains during the last sessions of the week
Inflation in the eurozone is still near record highs
European stocks rise in early European trading
Euro CPI rose by 8.5% annually
Markets await Prelim UoM Consumer Sentiment in the US
European Stocks Rise with Banking Sector Support
European stocks rose at the beginning of the week's last trading sessions as concerns about financial stability subsided following the regulators' support for the banking sector.
The Eurostoxx 600 index rose 1.03% to 446 points. The UK FTSE 100 index rose by 1.11% at 7492 points, the German DAX index rose by 0.99% to 15109 points, and the French CAC40 index rose by 0.84% at 7084 points.
European stocks rose as risk appetite improved and concerns about a banking crisis eased slightly after US authorities and banks took action to rescue First Republic Bank.
Eurozone Inflation Stable at Record Highs Despite Slight Decrease in February
The euro area's annual inflation rate was 8.5% in February 2023, down from 8.6% in January. The statistics showed that despite the decrease in energy costs, the prices of all other sectors rose strongly.
Despite data showing a slowdown in inflation growth, it is still stable at record highs, which puts more pressure on the European Central Bank.
Today's data comes after the European Central Bank raised interest rates by half a percentage point at its meeting yesterday from 3.00% to 3.50%.
ECB governor Christine Lagarde confirmed that the eurozone economy is in a good position and supports continued tightening monetary policy.
Despite the fears arising from the negative repercussions of the banking sector crisis on the economy, Lagarde confirmed yesterday that inflation rises would force the bank to raise interest with its commitment to achieving the desired rates at 2%.
Gold settles pending US economic data
Today, gold prices were near $1,937 an ounce. The markets are waiting for important economic data in the US. Markets await Prelim UoM Consumer Sentiment in the US.
It comes at a time when the US dollar witnessed some decline, as it fell by 0.29% to 104.40.