European stock markets close mixed, with ECB interest forecasts and data from Germany

European stock markets closed without a single signal this Tuesday (17), after new directions from European Central Bank (ECB) leaders on the next interest rate hike and with German inflation data on the radar. Also, China’s Gross Domestic Product (GDP) data and Germany’s economic expectations index also guided business in this session.

In London, the FTSE 100 fell 0.12% to 7,851.03 points, dragged down by healthcare sectors, according to analysis by CMC Markets, with Astrazeneca and Unilever closing down more than 1. 0% and 1.5%, respectively.

In Frankfurt, the DAX index closed up 0.35%, at 15,187.07 points. Today, Germany’s statistics office reported that the country’s annual consumer inflation rate (CPI) slowed to 8.6% in December, indicating that the ECB’s efforts to control the rate are having an effect. The ZEW index of economic expectations in the country rose to 16.9, growth well above expectations by analysts.

According to Capital Economics, the result of the ZEW index indicated that the economy will hold up better than feared. However, “with underlying price pressures still mounting, tight monetary policy will become an increasing drag on the economy this year.”

The CAC 40, in Paris, advanced 0.48%, to 7,077.16 points, and the FTSE MIB, in Milan, closed up 0.31%, to 25,981.19 points. In Madrid, the Ibex 35 index rose 0.13% to 8,882.70 points. Finally, on the Lisbon Stock Exchange, the PSI 20 fell 0.29%, to 5,998.13 points. Quotes are preliminary.

This Monday (17), officials with knowledge of the ECB told Bloomberg that policymakers at the monetary authority are considering a slower pace of interest rate hikes from March. Despite the forecast, today the chief economist of the ECB, Philip Lane, said that interest rates should continue to increase due to the high uncertainty with which the institution is dealing, such as high inflation.

Director Mario Centeno, on the other hand, exhibited a positive view for growth in the euro zone in 2023, noting that he believes it is likely that the region will avoid contraction in the first quarter.

At the World Economic Forum, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, reaffirmed the projection of global growth of 2.7% this year.