(RTTNews) – European markets ended largely lower on Thursday after a volatile session. Investors were reacting to the European Central Bank’s financial policy announcement and were following Brexit news and coronavirus updates, as well as assimilate the latest batch of economic knowledge of the area.
The ECB left its key interest rates and the duration of the asset acquisition unchanged as expected, and reaffirmed its willingness to equip it if necessary.
The Pan-European Stoxx 600 index fell by 0. 59%. The UK’s 100-cent FTSE fell by 0. 16%, Germany’s DAX fell by 0. 21% and France’s CAC 40 lost 0. 38%, while Switzerland’s SMI lost 0. 18%.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Ireland, the Netherlands, Norway, Poland, Portugal, Spain, Sweden and Turkey ended up weak, while czech Republic, Greece and Russia closed upwards.
Instead, Peugeot grew by 4%. Sodexo, Kering, Valeo and Atos won between 1% and 1. 5%.
In the German market, Munice RE and Covestro lost more than 2% each, while Thyssenkrupp, SAP and Bayer fell between 0. 8 and 1%.
Among the winners of the CAC 40 index, Henkel rose by almost 4. 5%. Continental complex 1. 7% and Adidas 1%.
In the UK market, Morrison’s stock fell dramatically after the organization reported a drop in 16th-year profits.
TUI shares rose by almost 5%. Royal Mail finished 3% higher, while Scottish Mortgage, Flutter Entertainment, Hiscox and Persimmon won between 1% and 2%.
The ECB’s main refinancing rate remained at a record point of 0 and the deposit rate remained at -0. 5%, in line with expectations. The active rate remained unchanged at 0. 25%.
The ECB stated that the Governing Council expects key interest rates to remain in or below existing grades until it has noticed that the inflation outlook is converging solidly to a sufficiently close point but below 2% in its projection horizon, and such convergence has been consistently reflected in the dynamics of underlying inflation.
The one for the pandemic emergency procurement program (PEPP) remained unchanged at 1. 35 billion euros.
The Governing Council discussed protracted the implications of a euro at the last political meeting, Lagarde said at the post-decision press conference.
“We want to look at this factor carefully,” he said. However, politicians saw an early desire to do so, he added, and reiterated that the ECB aims at the exchange rate.
Meanwhile, emergency talks between the UK and the EU have begun on the target plan to undermine parts of the withdrawal agreement. European Commission Vice-President Maros Sefcovic expressed fear about the plan and the EU warned that if the UK’s new bill were to be implemented, it would be a serious violation of the withdrawal agreement and foreign law.
In other economic news, the UK’s speed value has increased at the fastest rate since 2016, as almost all regions recorded value increases, as knowledge of the Royal Institution of Chartered Surveyors survey, or RICS, showed.
France’s commercial production increased for the third consecutive month, but the speed of expansion was the slowest in the existing expansion sequence, the Insee statistical workplace reported.
Industrial production rose 3. 8% month-over-month, slower than the 13% recorded in June. This accumulation is also less than the expected 5%.
Similarly, production expansion fell to 4. 5% from 14. 8% a month ago. Production in extractive industries remained solid in July and structured production rose to 5% in July.
Italy’s commercial production grew more than expected in July, driven by capital goods and intermediate goods, according to the knowledge of the Istat statistical workplace. Industrial production grew by 7. 4% compared to June, while it rose by 8. 2%. 3. 5 per cent.