The positive data on the GDP of the EU, are pushing european equities to the hausseil 9 moisà from deDavid Becker
After the decline Monday, the european stock markets stabilize. The Dax climbed above the level of 17000, but it should be worse than the FTSE 100, which moves upward due to the depreciation of the pound. The stock exchanges in the peripheral countries of the Euro area have recorded the best performance, with the FTSE MIB which is gaining 0.75 per cent after the sharp decline experienced during the session on Monday because of new concerns about the Italian banking sector. The euro area data published in the day today have confirmed that inflation tends to increase. The results are not going to increase the pressure on the ECB and, at least for the time being, the quantitative easing program of the Eurotower will not be removed.
The decline in equity markets has, however, continued in Asia, with the japanese market in decline, following the decision of the Bank of Japan to maintain monetary policy unchanged. However, the japanese central bank has revised to positive its outlook for growth, enjoying a positive effect Trump. In China and Hong Kong, the stock markets are still closed for the holidays from the lunar New Year. While in Europe the nervousness caused by Trump seems to disappear, the u.s. markets are down. Finally, the price of oil is down, with WTI below $ 53 for barrel.
The Euro zone GDP for the fourth quarter exceeds expectations
The GDP of the euro area in the fourth quarter exceeded expectations with a quarterly variation of 0.5%, while the figure for the third quarter was corrected upward from u first 0.3% to 0.4% on a quarterly basis. In Spain, the reading of the GDP, published yesterday, marks a 0.7% on a quarterly basis, whereas in France, the figure is 0.4% on a quarterly basis. Finally, in ruling on the preliminary data throughout 2016, during the fourth quarter, growth in Germany was strong. This confirms that the recovery of the euro zone continues not only, but is in full expansion. In the fourth quarter, the growth seems to have been driven by consumption and rising investment. In addition, the unemployment figures, published in the day today, were better than the expectations at 9.6%, which is the lowest rate since 2009. Increase, therefore, the arguments that support the critics of the quantitative easing program of the ECB, in particular with regard to the increase of inflation.
Inflation of the harmonised index for the euro area consumer prices for the month of January was higher than expected, from 1.1% in December to 1.8% on an annual basis. The data of Spain and France suggested that the reading of the euro zone have surprised to the upside. The rate of 1.8 per cent is broadly in line with the definition of price stability of the ECB, but below the 2% target. During this time, in Spain, the harmonised index of consumer prices is much higher, up to 3%. To this day, the rise in the inflation rate in the euro area is mainly due to base effects in energy prices, which in January increased by 8.1% on an annual basis after the increase of 2.6% annual from the previous month. Core inflation remains stable at 0.9% on an annual basis, which is the figure on which Draghi and the ECB will focus to defend the program of quantitative easing, which sees the purchase of securities extended to the next year. Frankfurt has, in effect, announced that the plan will continue until the end of 2017 and will be concluded gradually.