European stocks surge higher; ECB meeting, Chinese data boost sentiment By Investing.com

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European stocks surge higher; ECB meeting, Chinese data boost sentiment

The ECB raised its key interest rate to a record peak on Thursday, but also signaled this will likely be its final move in a more-than year-long fight against stubbornly high inflation.

"We expect this to be the last hike from the ECB in this cycle, but that does not mean the era of tight monetary policy is over,” said Dean Turner, an economist at UBS. “Interest rates are likely to remain at these levels well into next year. Moreover, the ECB will continue to, and may even accelerate, the shrinking of its balance sheet."rose 4.9% on the year in September, more than the 4.8% expected, and a jump from 4.3% the prior month.

In the corporate sector, H&M stock fell 4.2% after the world's second-biggest fashion retailer reported flat sales in its most recent quarter, lagging expectations as the fashion firm struggles to attract customers while the cost of living crisis drags on. This comes as a real disappointment after it had reported strong second-quarter numbers as cost-cutting measures started to bear fruit and its summer collection benefited from warmer weather in Europe.Oil prices rose Friday, climbing to their highest level since early November last year, on the back of more stimulus measures as well as the better-than-expected economic data from major importer China.

 

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