(RTTNews) – Major European stocks closed slightly higher on Monday as investors were largely cautious, reacting to German federal election results, and comments from ECB President Christine Lagarde that inflation in the eurozone could exceed projections, but price increases are likely to be temporary.
Olaf Scholz of the center-left Social Democrats defeated Chancellor Angela Merkel’s conservatives in extremely close German federal elections, sparking what could be months of complex coalition talks to decide who will lead the biggest economy in Germany. Europe.
The leftist party Die Linke has fallen below the 5% threshold required to enter parliament.
The UK FTSE 100 gained 0.17%, the German DAX climbed 0.27% and the French CAC 40 rose 0.19%, while the Swiss SMI fell 1.07%. The pan-European Stoxx 600 lost 0.19%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Greece, Iceland, Norway, Portugal, Russia, Spain and Turkey closed higher.
Denmark, Finland, Ireland, the Netherlands and Sweden fell, while Poland finished flat.
In the UK market, energy stocks rose as Brent futures moved towards $ 80 a barrel amid supply issues and amid optimism about rising demand. Royal Dutch Shell, BP and TotalEnergies all closed with strong gains. BP said nearly a third of its UK service stations were running out of main qualities at nearly a third of its stations following intense demand and a shortage of truck drivers.
Shares of Rolls-Royce Holdings climbed more than 11% after the aerospace company was selected to supply the powertrain for the B-52 Stratofortress as part of the commercial engine replacement program.
IAG climbed 6%. British Land, Compass Group, Land Securities, Associated British Foods, HSBC Holdings, Prudential, BT Group and Whitbread gained 2-4%.
Experian, Halma, Croda International, Spirax-Sarco Engineering, RightMove, Admiral Group, Astrazeneca, Segro, Intertek Group, Rentokil Initial, JD Sports Fashion and Smith (DS) fell 2-4.5%.
On the French market, Unibail Rodamco, Technip, Air France-KLM and Accor grew by 5 to 7%. Vinci, Crédit Agricole, Sodexo, Safran, Société Générale, BNP Paribas, Thales and Renault increased by 2.5 to 4%.
Biocorp shares rose sharply after the medical device company announced an agreement with Danish pharmaceutical company Novo Nordisk A / S (NVO) to develop and distribute a smart Mallya companion device for the Novo Nordisk FlexTouch pen used by people with diabetes.
Teleperformance, Dassault Systèmes and Hermes International finished down 3-4%.
In Germany, BASF recovered strongly after signing a memorandum of understanding with Sanyo Chemical for joint development and access to technologies to create advanced polyurethane dispersions.
Deutsche Bank, MTU Aero Engines, Henkel, Daimler, Vonovia, Allianz, Bayer, Continental, Airbus Group, Munich RE, BMW, Porsche Automobil, Volkswagen and Covestro gained 1 to 2.5%.
Zooplus gained more than 4% after Swedish private equity firm EQT AB made an offer to buy online pet supplies retailer for around 3.36 billion euros ($ 3.94 billion ).
HelloFresh, Merck, Symrise, Zalando, Deutsche Post, Adidas and Sartorius finished down 1-4%. Sartorius has announced plans to expand its presence in Michigan by opening a new, state-of-the-art 130,000 square foot plant in Ann Arbor at the end of 2023.
European Central Bank President Christine Lagarde said on Monday that it was possible for eurozone inflation to escalate, but the risks of such a scenario were limited.
“While inflation could turn out to be lower than expected if economic activity were to be affected by further tightening of restrictions, certain factors could lead to stronger price pressures than currently expected,” Lagarde said at the time. a virtual hearing of the European Parliament.
Eurozone money supply growth accelerated in August, while credit to the private sector slowed further, data released by the European Central Bank showed on Monday.
Broad money M3 grew 7.9% year-on-year in August, after rising 7.6% in July. M3 is expected to grow by 7.8%.
Regarding credit dynamics, data showed that credit to the private sector registered an annual growth of 3.1%, slower than the 3.4% increase in July. Adjusted loans to the private sector also rose at a slower pace of 2.9% after climbing 3% in July.
German inflation is likely to rise sharply from current levels due to the reduction in VAT the previous year, the Bundesbank said in its monthly report on Monday.
“From today’s perspective, rates between 4% and 5% are temporarily possible from September until the end of the year,” the bank said.