European stocks close higher amid central bank’s rate hike

Italy’s FTSE MIB becomes best daily performer, rising 1.92%

European stock exchanges closed Friday with gain, a day after the European Central Bank’s (ECB) decision to increase its key rates by 75 basis points.

The ECB’s decision follows a 50-basis points of rate hike in July, which marked the first rate increase in over a decade, in order to fight record high inflation.

Euro area annual inflation is expected to be 9.1% in August, up from 8.9% in July,according to a flash estimate from Eurostat, the statistical office of the EU.

According to Eurostat estimates released on Wednesday seasonally adjusted GDP increased by 0.8% in the euro area and by 0.7% in the EU, compared to the previous quarter.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, was up 6.28 points, or 1.52%, to finish at 420.37.

Germany’s DAX 30 rose 183 points, or 1.43%, to close at 13,088. France’s CAC 40 added 86 points, or 1.41%, to 6,212.

Italy’s FTSE MIB was the best performer of the day by rising 416 points, or 1.92%, to 22,094.

Spain’s IBEX 35 increased 116 points, or 1.47%, to 8,033 at the closing bell.


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