The main European indicators showed an increase of up to 1% in yesterday's trading. The consolidated European indicator STOXX Europe 600 increased by 0.93%. The UK FTSE 100 index and the French CAC 40 added almost the same amount - 0.9% each. The German DAX gained 0.7% and the Italian FTSE MIB gained 1.1%. The Spanish indicator IBEX 35 grew the least – by only 0.2%.
The positive mood contributed to the assessment of further actions of the central banks in relation to monetary policy. At the moment, most experts are inclined to believe that the US Federal Reserve will increase the interest rate by 75 points, to 2.25-2.5%, at the next meeting in July, as it was already done in June. And only a small part of analysts believe that it is possible to raise the rate by 100 points at once, up to 2.5-2.75%.
Also, the European Central Bank's decision will be announced later this week, but the market is already mentally prepared for tougher decisions, so it won't surprise anyone with a tightening of monetary policy. It is expected that the interest rate will be raised by 25 points in July, and later, in September, by another 50 points. The data on inflation growth in European countries over the past month will be released.
In Italy, the heads of 110 cities in the country have asked the prime minister who is about to leave his post to reconsider his decision to leave.
Of the components of the STOXX Europe 600 index, NEL ASA (+19.1%) and Sinch AB (+17.2%) posted significant share price increases.
Quotes of Finnish Nordea Bank Abp rose 5.5% due to the fact that the net profit received in the last quarter, exceeded experts' expectations. The bank also announced the forthcoming launch of a program for the repurchase of its securities for a total amount of 1.5 billion euros.
Italian banks Banco BPM and Intesa Sanpaolo also saw an increase in the value of securities, adding 3% each.
Among the largest French banks, there is an increase in the value of shares. Societe Generale rose 3.4%, BNP Paribas and Credit Agricole added 2% each.
Hennes & Mauritz has begun the process of ending operations in Russia due to complexities and uncertainties going forward. The cost of the company's securities rose by 0.7%.
Car manufacturer Stellantis NV announced the termination of the joint venture for the production of Jeep cars in China. The value of the company's papers increased by 2.5%.