European stock exchanges close without a single direction with US-Iran agreement on the radar
European stock markets closed without a single direction this Friday (19) as investors ponder the real fulfillment of the peace agreement between the USA and Iran and evaluate the effects of the conflict on the economies.
In London, uncertainty about the government of UK Prime Minister Keir Starmer, in light of the seat won by Andy Burnham in Parliament, weighed on the negotiations. The Juneteenth holiday in the US reduced liquidity in the markets.
In London, the FTSE 100 closed down 0.41%, at 10,356.90 points. In Frankfurt, the DAX was stable at 25,026.61 points. In Paris, the CAC 40 lost 0.55%, to 8,421.14 points. In Milan, the FTSE MIB advanced 0.31%, to 52,848.93 points.
In Madrid, the Ibex 35 dropped 0.16%, to 19,373.40 points. In Lisbon, the PSI 20 increased by 0.69%, to 9,102.60 points. Quotes are preliminary.
Despite the signing of the memorandum of understanding between Washington and Tehran, central bankers are still digesting the consequences of the conflict for the trajectory of interest rates.
The chief economist of the ECB (European Central Bank), Philip Lane, considered that the euro zone economy is going through a "medium-sized" inflationary shock, which requires a moderate policy response.
Leader Pierre Wunsch (Belgium) sees a new monetary tightening in July, if inflationary pressure spreads. In Germany, the producer price index (PPI) rose 2.2% in May year-on-year.
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At the same time, in the United Kingdom, in addition to macroeconomics, the focus remains on politics. Ministers plan to ask Starmer to set a timetable for his departure, following Burnham's victory in the Makerfield by-election.
The Labor mayor of Greater Manchester will travel to London to be sworn in as an MP on Monday.
Among the highlights in the stock market, in Paris, Sanofi closed up 0.3% after Japan approved the subcutaneous formulation of a biopharmaceutical oncology drug.
In Copenhagen, Vestas Wind Systems jumped 5.3% after JPMorgan included the Danish wind turbine maker on its positive catalyst radar.
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Source: CNN