FX.co ★ European stock markets wait for central bank decisions

The major indicators of the European region were mostly up at the close of yesterday's trading. For instance, the STOXX Europe 600 added 0.26%, Germany's DAX gained 0.2%, France's CAC 40 and Italy's FTSE MIB rose by 0.5%. The UK indicator fell 0.6% and Spain's IBEX 35 was down by 1.1%.

Investor optimism was supported by the results of the US Federal Reserve meeting. For example, the Fed decided to increase the pace of winding down its asset purchase programme and to keep the base rate at 0-0.25% per annum. However, it plans to raise the rate next year to 0.75-1%. The Fed has also shaped plans more clearly for dealing with rising inflation.

Investors are also waiting for the European Central Bank and Bank of England to publish their decisions. Most analysts believe that the ECB will continue its monetary stimulus measures until 2023.

Experts' opinions on the decisions to be taken by the Bank of England today are varied because of the mixed situation with the increasing number of coronavirus cases, the slower pace of the country's economic recovery and the acceleration of inflation. According to the IMF director, the UK central bank should start winding down its stimulus measures, which, among other things, are driving up inflation in the country.

Consumer prices in the UK rose 5.1% year-on-year last month. This was the biggest growth in 10 years. The figure surpassed the October level of 4.2% as well as experts' expectations of an increase of 4.8%.

At the same time, the consumer price indicator in France rose by 3.4% last month to a record high for the country in more than 10 years. By comparison, the rate of inflation was 3.2% a month earlier.

Spain's inflation rate is even higher than in other European countries. It stands at 5.5%. This is the highest rate in 30 years. In October consumer prices went up by 5.4%.

Industria de Diseno Textil SA's stock price fell by 4.5% despite strong third-quarter financials. The company's sales rose by 21% to €7.36 billion, beating market forecasts of €7.31 billion.

Hennes & Mauritz AB also reported an increase in sales of 8% to 56.81 billion SEK ($6.21 billion), which was almost in line with expectations of experts who had expected sales to rise to 57 billion SEK. At the same time, the value of the company's securities dropped by 2.7%.

Assicurazioni Generali SpA shares gained 0.4% as the company published its strategic development plan until 2024, which includes an increase in shareholder compensation.

Industrial conglomerate Schneider Electric SE added 1.4%. The company announced the appointment of Alexey Kashayev as head of the company's Russia and CIS division.

Shares in marketing company DCC gained 9% following the purchase of US company Almo Corp.

The company's shares lost 9.4% on poor financial results released by Belgium's Etablissementen Franz Colruyt in the first half of the year.

IAG's share price has fallen by 5% following the announcement by UK-based IAG that it cancelled its earlier planned acquisition of Air Europa.