AIRLINK 58.23 Decreased By ▼ -0.37 (-0.63%)
BOP 6.24 Increased By ▲ 0.03 (0.48%)
CNERGY 3.97 Decreased By ▼ -0.02 (-0.5%)
DFML 16.07 Increased By ▲ 0.06 (0.37%)
DGKC 67.61 Increased By ▲ 0.29 (0.43%)
FCCL 17.82 Increased By ▲ 0.27 (1.54%)
FFBL 25.40 Decreased By ▼ -0.49 (-1.89%)
FFL 9.15 Increased By ▲ 0.01 (0.11%)
GGL 9.79 Increased By ▲ 0.02 (0.2%)
HBL 113.77 Increased By ▲ 1.27 (1.13%)
HUBC 111.61 Decreased By ▼ -3.68 (-3.19%)
HUMNL 6.55 Decreased By ▼ -0.04 (-0.61%)
KEL 4.39 Increased By ▲ 0.17 (4.03%)
KOSM 4.59 Increased By ▲ 1.03 (28.93%)
MLCF 37.73 Increased By ▲ 0.62 (1.67%)
OGDC 125.21 Increased By ▲ 8.81 (7.57%)
PAEL 22.61 Decreased By ▼ -0.10 (-0.44%)
PIAA 11.10 Increased By ▲ 0.31 (2.87%)
PIBTL 6.17 Decreased By ▼ -0.08 (-1.28%)
PPL 109.07 Increased By ▲ 5.07 (4.88%)
PRL 26.84 Increased By ▲ 0.45 (1.71%)
PTC 10.48 Increased By ▲ 0.95 (9.97%)
SEARL 52.85 Increased By ▲ 0.86 (1.65%)
SNGP 66.38 Increased By ▲ 1.26 (1.93%)
SSGC 11.01 Increased By ▲ 0.08 (0.73%)
TELE 7.13 Decreased By ▼ -0.08 (-1.11%)
TPLP 11.93 Decreased By ▼ -0.06 (-0.5%)
TRG 76.07 Decreased By ▼ -0.78 (-1.01%)
UNITY 20.47 Decreased By ▼ -0.02 (-0.1%)
WTL 1.30 No Change ▼ 0.00 (0%)
BR100 6,441 Increased By 109.2 (1.72%)
BR30 22,098 Increased By 468.8 (2.17%)
KSE100 62,816 Increased By 901.5 (1.46%)
KSE30 21,134 Increased By 282.7 (1.36%)

European stocks emerged from their session lows and closed nearly flat on Thursday after the European Central Bank raised interest rates by an expected 75 basis points and signalled a slower pace of rate hikes going forward.

An index of euro zone stocks ended the day down 0.1%. It had shed as much as 1.2% before the ECB’s policy decision.

The bloc’s lenders outperformed with a 0.6% gain after the ECB cut subsidies it provides to banks through cheap loans called Targeted Longer-Term Refinancing Operations (TLTRO), which analysts said was not as bad as feared.

The central bank raised its deposit rate by 75 basis points to 1.5% and put the reduction of its bloated balance sheet on the agenda, but said “substantial” progress had already been made in its bid to fight off a historic surge in inflation.

“The ECB is living on the edge of a dovish pivot. It’s clear that this is a central bank that wants to front-load rate hikes to control inflation,” said Viraj Patel, global macro strategist at Vanda Research in London.

“But they are also wary that they are not in control of a lot of external growth and market factors that can act as a circuit-breaker to the hiking cycle.”

The pan-European STOXX 600 index closed flat, with banking-heavy Italian and Spanish indexes outperforming.

“With another 75bp rate hike delivered today and expectations for NII (net interest income) across many banks looking unaggressive, we remain positive,” analysts at Jefferies wrote in a note.

Credit Suisse tumbled 18.6% after the embattled lender said it planned to raise 4 billion Swiss francs($4.05 billion), cut thousands of jobs and shift its focus to its rich clients from investment banking, as it attempts to put years of scandals behind it.

Boosting UK’s FTSE 100, Shell rose 5.5% after the energy major posted $9.45 billion in profit and announced plans to raise its dividend by year-end. France’s TotalEnergies gained 3.0% after posting a jump in third-quarter net profit.

The two companies helped lift Europe’s oil & gas sector by 3.5%.

However, technology stocks remained under pressure as Franco-Italian chipmaker STMicroelectronics fell 7.0% after it forecast sales growth to slow in the latter part of the year.

Miners also took a hit as Anglo American fell 2.0% after a drop in copper production kept its third-quarter output broadly in line with last year.

Comments

Comments are closed.