European stock markets close mixed with prospects for the ECB’s stance on the radar

European stock markets closed without a single signal today, on a day with attention to data from the region and the stance of the European Central Bank (ECB). The consumer price index (CPI) in Germany pointed to persistent inflation in the bloc’s largest economy, which raised uncertainty about the euro zone’s monetary policy. Furthermore, the earnings season remains in focus.

The pan-European Stoxx 600 index closed up 0.11%, at 508.52 points. Germany’s CPI was 2.2% in April, unchanged from March, according to preliminary data released today by Destatis. In the monthly comparison, the German CPI rose 0.5% in April. “Today’s rise in German global inflation is a good reminder of how difficult the final step will be for the European Central Bank (ECB) to sustainably bring inflation to 2%. Still, taking into account the ECB’s communication over the past few months, a rate cut at the June meeting still looks like a done deal,” says ING.

In Frankfurt, the DAX fell 0.24%, to 18,118.32 points. The euro zone economic sentiment index was also released today, and disappointed by falling in April, to 95.6 points. ECB director, Pierre Wunsch stated in an interview that it is necessary to be cautious with the situation in the euro zone, with inflation still high. According to him, a reduction in interest rates in June is not guaranteed in this context. At the same time, the authority commented that, unless bad news emerges, it believes in “at least two interest cuts” this year.

Asked about the possibility of a cut greater than 25 basis points in June, he said he would be surprised if that happened. Wunsch said he wants to continue to see data that raises his confidence that inflation slows toward the 2% target.

In Madrid, the Ibex 35 fell 0.48%, to 11,100.80 points, pressured by political uncertainty in the country. Spanish Prime Minister Pedro Sánchez said today that he will remain in office “with even more strength” after spending days reflecting on the issue. In the middle of last week, Sánchez announced that he would take a five-day break to think about his future in office, after a court initiated preliminary proceedings against his wife, Begoña Gómez, for alleged involvement in a corruption case.

Among the companies, according to Reuters, BHP may improve its offer for Anglo American, after having its initial proposal of US$39 billion rejected last week. In London, Anglo American shares rose 3.54%. In the city, the FTSE 100 rose 0.09%, to 8,147.03 points.

Between reports, Vivendi increased its revenue by more than 5% in the first quarter, but the French media group’s shares fell 0.12% in Paris, where the CAC 40 fell 0.29%, to 8,065.15 points . In Milan, the FTSE MIB rose 0.14% to 34,296.31 points. In Lisbon, the PSI 20 advanced 1.03%, to 6,680.62 points.