European stock markets closed higher on Tuesday (Feb. 1). The main stock markets closed in positive territory after investors reacted to the strong financial figures of listed companies in Europe.
Investors focused on the monetary policy meetings of the European Central Bank (ECB) and the Bank of England (BoE) on Thursday. The BoE is expected to raise interest rates to dampen inflationary pressures. No change is expected from the ECB, on the other hand.
- The STOXX 600 index opened at 476.84 points, up 1.98 points, or +0.42%.
- The German Index DAX index opened today at 15,689.16, up 69.77, or +0.45%.
- The French Index CAC-40 index opened today at 7,117.45, up 17.96, or +0.25%.
- The FTSE 100 London closed at 7,535.78, up 71.41, or 0.96%.
European stock markets recovered after falling sharply in January. This was the sharpest decline since October 2020, when concerns about rising interest rates, inflationary pressure, and political tensions dragged the market down by 4%.
Finance stocks rose 2.1%, supported by UBS shares, which announced the highest annual profit since the global financial crisis.
Shares in UBS, Switzerland’s largest bank, rose 8 percent to their highest level in four years.
Mining stocks jumped 3.5% after various stimulus measures in China boosted metals prices in recent weeks.
Shares in German cement maker Heidelberg Cement rose 2.6% after fourth-quarter sales exceeded expectations.
Shares in Dutch automaker Stellantis rose 2.2% after the union announced the company will cut about 1,400 jobs in France this year to adapt to the changing situation in the industry.
The market is also supported by the fact that IHS Markit, a financial information service provider, announced Tuesday that manufacturing in the eurozone continued to grow in January. The resolution of supply chain issues has contributed to the growth, but in most member countries, companies are feeling the rising inflationary pressures.
The final purchasing managers’ index for the manufacturing sector in the euro zone rose to a five-month high in January, reaching 58.7 points (December: 58.0 points). This shows that the manufacturing sector in the eurozone is continuing to expand.