Bullish start in Europe, in a day in which the indices will try to recover part of those yielded in the previous sessions and in which, before opening the markets, the data of the GDP of Germany of 3Q2021 and of the preliminary reading of December of the consumer confidence index, and in which we will have to be very attentive to the measures announced by the different governments of the German region, in particular, and of Europe in general, to combat the new wave of the pandemic.
The Frankfurt DAX rises 0.35% to 15,933.70, the Ibex 35 scales 0.23% at 8,810 points, the London FTSE advances 0.13% in the 7,295, the CAC of Paris adds 0.33% in the 7,065.65 and the italian bag it rebounded 0.42% to 27,224.00 points. The European average, the Euro Stoxx 50, rises 0.44% in the 4,295.15.
At the business level, it should be noted that today the Italian Government will discuss the approach to acquire Telecom Italia by KKR when the fund submits a binding proposal.
This morning the data on consumer confidence in Germany was released. The Gfk consumer confidence indexr in Germany stands at -1.6 points, the lowest level since last May. The previous data for November had stood at 1 points. The market consensus expected a decline to -0.5 points. Consumer confidence tends to anticipate strong domestic demand.
Likewise, also in Germany this morning it was known, before the opening of the markets, that the pGermany’s gross domestic product (GDP) grew 1.7% in the third quarter, announced this Thursday the Federal Institute of Statistics Destatis, revising its initial estimate published at the end of October by 0.1 percentage points. “The recovery of the German economy continued through the summer,” Destatis said in a statement, following a 2% rise in the second quarter (also revised). Instead experts worry that growth will stagnate in the fourth quarter due to shortages of raw materials and electronic components. The annual rate of GDP remains at 2.5%.
Yesterday it was also known that German business confidence It worsened for the fifth month in a row as supply problems in manufacturing and a surge in COVID-19 cases clouded growth prospects. The Ifo Institute said its business climate index fell to 96.5 from 97.7 in October.
The long-term inflation expectations in the euro area they fell to a one-month low at 1.8303%.
Fabio Panetta, member of the Executive Board of the European Central Bank (ECB), pointed out yesterday that “a premature tightening of monetary policy it could lead to a long-term recession. There is no evidence that the current rise in inflation will continue in the medium term. We must not lose patience, if we withdraw the stimuli quickly, we will erase everything that has been achieved so far. We must continue with the stimulus, it is necessary, otherwise we run the risk of sending the wrong message of tightening monetary policy. Forward guidance on core inflation is not yet satisfactory ”.
For its part, Jens Weidmann, President of the Bundesbank and member of the Governing Council of the ECB explained that “lInflation will peak at 6% in Germany and will barely fall below 3% by the end of 2022. The ECB should not maintain its ultra-accommodative policy for much longer due to the uncertainty surrounding inflation. Growth in Germany will be below what the Bundesbank anticipated in June, recovery will be delayed. Upward risks to inflation predominate in Germany and the euro area. The PEPP should not be extended to other programs. We are seeing an increase in complaints due to lack of workforce by companies ”.