The main stock markets in Europe ended the session on Thursday (20/6) higher, because investors reacted positively to the decisions of central banks on interest rates.
The pan-European Stoxx 600 rose 0.93% to close at 518.90 points, with all sectors and major bourses in positive territory. Technology stocks led today’s gains, up 1.63%.
In Germany the DAX increased 0.95% to 18,239.09 points, in Britain the FTSE 100 increased by 0.82% to 8,272.46 points, in France the CAC 40 increased by 1.34% to 7,671.34 points, in Spain the IBEX 194 points and 194% of Spain. in Italy the FTSE MIB jumped 1.37% to 33,675.15 points.
The Bank of England Interest rates were left unchanged at 5.25% and a 16-year high in a move widely expected. A majority of economists polled by Reuters predicted a contraction in August after the country’s July 4 election. The decision comes after data released on Wednesday showed UK inflation rose 2% year-on-year in May, hitting the BoE’s target.
In the past, the central bank of Switzerland cut interest rates by 0.25 percentage points to 1.25%, a move expected by two-thirds of economists polled by Reuters. The decision follows a similar move in March and means that the SNB maintains its position as a frontrunner in the global monetary easing cycle.
Finally, Norway’s central bank kept interest rates at 4.5%, as expected, and said it would remain at a 16-year high until the end of 2024, if the economy improves as currently expected.