European stocks recover from losses after ECB hikes rates

European stocks recover from losses after ECB hikes rates

European stocks came off their session lows and closed nearly flat on Thursday, after the European Central Bank raised interest rates 75 basis points, as expected, and pointed to a slower pace of rate hikes ahead. .

* The euro area stock index ended the day down 0.1%. Before the ECB’s decision, it lost up to 1.2%.

* The bloc’s lenders fared better, gaining 0.6%, after the ECB cut the subsidies it gives to banks through cheap loans called Targeted Long-Term Refinancing Operations (TLTROs). , which, according to analysts, was not as serious as feared.

* The central bank raised its deposit rate by 75 basis points, to 1.5%, and put reducing its bloated balance sheet on the agenda, but said “substantial” progress had already been made in its bid to fight inflation.

* The pan-European STOXX 600 index closed flat, with the Italian and Spanish indices, which are heavily weighted in the banking sector, among the best performers.

* Credit Suisse plunged 18.6% after the embattled lender said it planned to seek 4 billion Swiss francs ($4.05 billion), cut thousands of jobs and shift focus from investment banking to focus on his wealthy clients, while trying to put years of scandal behind him.

* On the UK’s FTSE 100, Shell rose 5.5% after the energy company posted a $9.45bn profit and announced plans to raise its dividend later in the year. France’s TotalEnergies gained 3.0% after reporting higher net profit in the third quarter.

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