European Stocks End Higher as US Debt-Ceiling Worries Ease
European Stocks End Higher as US Debt-Ceiling Worries Ease
European stocks closed higher on Thursday after US lawmakers reportedly agreed to extend the federal debt limit through early December. The French CAC and the Swiss Market Index were both up 1.7%, the German DAX closed up 1.9%, the FTSE 100 in the UK rose 1.2%, and the Stoxx Europe 600 ended 1.6% higher.
Retail footfall in the UK in September showed improvement but was dampened by a 15% drop attributable to the COVID-19 pandemic, City AM reported, citing data from Springboard. Footfall fell 17.4% during the month compared with 2019 levels, following an 18.6% drop in August.
Specifically, footfall fell compared with 2019 by 20.3% in high streets, 23.6% in shopping centres and 4.6% in retail parks.
The size and length of the current inflation spike are proving bigger than expected, but inflationary pressures should subside as the COVID-19 pandemic recedes and global demand and supply normalize, Reuters reported Thursday, citing Bank of England Chief Economist Huw Pill.
The central bank’s new chief economist, who joined in September, told lawmakers that he sees interest rates remaining at relatively low levels for the coming years.
Moving to Europe, Germany’s seasonally adjusted industrial production declined 4% in August on a monthly basis following a revised 1.3% rise in July, according to provisional data from the Federal Statistics Office released. The latest reading was in line with market estimates.
The European Union is drafting proposals to try to address some of the concerns of the UK over trade flows at the border with Northern Ireland, Bloomberg News reported, citing a senior EU official. Among the ideas proposed, the EU plans to offer more flexibility for pharmaceuticals and food products, plus simplifications of customs checks.
The Eurozone’s house prices climbed 6.8% year on year in Q2 of 2021, the most since the last three months of 2006, Eurostat said. Across the European Union, home prices rose 7.3% year on year, the most since Q3 of 2007.
On the corporate front, Aareal Bank (ARL) jumped 24% after it confirmed media reports that it is in discussions with a consortium led by private equity firms Centerbridge Partners and TowerBrook as well as Advent International over a potential sale of a majority stake in the company.
Aareal said the investors are offering an indicative price of 29 euros ($33.5) per share, reflecting a premium of 35% over the volume-weighted average share price of the company during the last three months.
European Stocks End Higher as US Debt-Ceiling Worries Ease
