© Reuters. Frankfurt Stock Exchange 02/03/2023 REUTERS
Por Johann M Cherian e Shreyashi Sanyal e Bansari Mayur Kamdar
(Reuters) – European stocks rose on Thursday, boosted by consumer staples and energy stocks, but data showed euro zone inflation remained high, bolstering fears that the European Central Bank (Reuters) ECB) will continue to raise interest rates.
The index reversed initial losses and closed up 0.5%.
Energy shares rose 1.4%, supported by firm prices, amid signs of a strong economic recovery in China, the largest importer of the commodity.
London-focused consumer staple stocks such as Diageo (LON:) e a Unilever (LON:), were up more than 1% each, while the European food and beverage index was up 1.8%.
Meanwhile, consumer price inflation in the 20 countries that use it rose 8.5% in February, compared with an 8.6% rise the previous month, due to lower energy prices, but the reading was still above from the 8.2% projected in a Reuters poll of economists.
Earlier in the week, data from Spain, France and Germany indicated that inflation remained sticky, fueling fears that the ECB will remain aggressive for longer.
ECB President Christine Lagarde said the price drop has not been stable and that interest rates will have to rise further and stay higher for some time.
European markets ended the first two months of this year on a high – the first time in four years – with banks up 18% as lenders benefit from higher net interest income, a consequence of high borrowing costs. .
Still, global equity market momentum has stalled lately as investors price in higher prices and higher interest rates.
(Reportagem de Johann M Cherian and Shreyashi Sanyal in Bengaluru)