Europe close: Stocks mostly in the green amid dearth of fresh triggers
By Alexander Bueso
Date: Friday 22 Mar 2024
(Sharecast News) - European stocks were mostly higher at the end of the week, as traders and investors digested a raft of interest rate decisions and dovish comments from central bankers over the course of the week.
The Stoxx 600 drifted lower by 0.03% to 509.64, alongside a 0.34% dip for the French Cac-40 to 8,151.92.
Spain's Ibex 35 on the other hand added 0.70% to 10,943.20, while the German Dax edged up 0.15% to 18,205.94.
Capturing the mood perhaps, strategists at Citi upped their year end 2024 target for the Stoxx 600 from 510 to 540.
"Our upgrade is driven by: (1) greater certainty on rate cuts, (2) YTD global growth upgrades by Citi economists, (3) and likely USD weakness from here," they said in a research note sent to clients.
"While macro risks have become more balanced in past months, in our view they are still skewed to the upside."
During the course of the week, the US Federal Reserve had indicated it was still on track for three cuts in 2024, the two remaining hawks at the Bank of England threw in the towel and the Swiss National Bank surprised everyone with a reduction.
So with little economic or corporate news out on Friday there was little to drive sentiment.
In Britain, retail sales were flat in February as fuel and food saw declines, in part due to the bad weather, according to data released on Friday.
German business sentiment improved in March, according to a survey released on Friday by the Ifo Institute.
The business climate index rose to 87.8 from 85.7 in February, coming in comfortably above consensus expectations of 86.0.
The current situation index increased to 88.1 in March from 86.9 the month before, while the expectations index printed at 87.5, up from 84.4.
The manufacturing gauge improved to -10 from -17.1, while the service sector index rose to 0.3 from -4.0. The index for trade rose to -22.9 in March from 30.8 in February, while the construction gauge was -33.5 versus -35.4.
Ifo Institute president Clemens Fuest said: "The German economy glimpses light on the horizon."
In equity news, Phoenix Group surged more than 8% after releasing results and said it would target $1.77bn in operating cash by 2026.
JD Sports slumped 6% on the fall-out from US sporting goods giant Nike warning on 2025 revenue falling.
Darktrace was also down, on news that KKR-advised tech fund KKR Dark Aggregator exited its stake in the UK cybersecurity company.
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