European stocks rise after Powell’s announcement that the Fed will keep rates high

The main European stock markets have risen this Friday and have closed with gains this week after the president of the Federal Reserve (Fed) American, Jerome Powell, will warn in Jackson Hole that they will continue to raise interest rates until inflation is controlled.

Milan has gained 0.49%; Paris 0.21%; Madrid 0.15%, London and Frankfurt 0.07% and the Euro Stoxx 50 index, which groups the main European listed companies, 0.1%, according to market data consulted by EFE.

In the weekly accumulated, Milan advanced 1.61%; London 1.05%; Paris 0.91%, Madrid 0.77% and Frankfurt 0.37%. For its part, the Euro Stoxx 50 added gains for the week of 0.55%.

The stock markets started negative and shortly after opening, they began to trade upwards along with the Dow Jones index futures, one of the main stock market indicators on Wall Street.

The New York Stock Exchange, which opened positive, entered losses an hour after the opening (it rose again at the close of the European ones) after the intervention of the president of the Fed in Jackson Hole (Wyoming), in which he maintained that will keep interest rates high until inflation comes down solidly.

These statements also affected the European parquets, which reduced their gains and, although they were close to losses, they closed higher.

For her part, the President of the European Central Bank (ECB)Christine Lagarde, will intervene later in that meeting, with the stock markets of the Old Continent closed.

In Europe today the final data on the gross domestic product (GDP) in Germany has been published, which has confirmed that the country’s economy stagnated in the second quarter of 2023.

There it was also known that the latest business confidence index in the country fell in August for the fourth consecutive month, up to 85.7 points.

At the close of the European stock markets, Brent oil, the benchmark in the Old Continent, rose 1.02%, to $84.20 per barrel and the euro depreciated 0.22%, to $1.0787, and stood at levels of mid-June.

In the debt market, the ten-year German bond, considered the safest in Europe, has closed with a yield of 2.556%, 4.9 basis points more than the day before.