Europe close: Stocks edge higher
By Alexander Bueso
Date: Friday 24 Nov 2023
(Sharecast News) - European stocks rose a tad on Friday, as investors mulled the latest detailed German economic growth figures.
The benchmark Stoxx 600 index was 0.33% higher at 459.98, alongside a 0.22% advance for the German Dax to 16,029.49.
Italy's FTSE Mib jumped 0.67% to 29,432.30.
The session was expected to remain fairly quiet and volumes thinner than usual, with US markets open for just a half day later after the Thanksgiving holiday on Thursday.
Data released earlier by Destatis confirmed the German economy contracted by 0.1% on the quarter over the three months to September, following a 0.1% increase in Q2.
On the same quarter a year earlier, GDP contracted by 0.4%.
Ruth Brand, president of the Federal Statistical Office, said: "After the weak economic development seen in the first half of 2023, the German economy began the second half of the year with a slight drop in performance."
Carsten Brzeski, global head of macro at ING, said: "Today's data will do very little to end the debate on whether or not the German economy is again the sick man of Europe. In any case, the German economy has become one of the growth laggards of the eurozone.
"This weak growth performance has a long list of explanations: there is the cyclical headwind stemming from inflation, still elevated energy prices and energy uncertainty, higher interest rates and China's changing role from being a flourishing export destination to being a rival that needs fewer German products. But there are also well-known structural challenges, ranging from demographics to energy transition and not enough investment."
In other economic news, European Central Bank president Christine Lagarde said in Spain that the monetary authority was in a position to watch how the economy evolves to recent rate increases.
But in separate remarks she indicated that the battle against inflation was not yet over.
There wasn't much in the way of corporate news, but Barclays was in focus following a Reuters report the bank is looking to save up to £1bn via cost cuts, which could result in 2,000 job losses.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN