The European markets ended Thursday’s session with mixed results, following the weak performance of the previous two days. Energy stocks continue to struggle following the recent collapse in crude oil prices. Miners were also under pressure due to falling copper prices.
Eurozone’s solid growth momentum is set to continue in the second quarter, mainly driven by domestic demand, and there are signs of a build-up of pipeline inflationary pressures, the European Central Bank said in its latest economic bulletin released on Thursday.
“Overall, incoming data point to solid growth in the second quarter of 2017,” the bank said.
The 19-nation economy expanded 0.6 percent in the first three months of the year after 0.5 percent in the fourth quarter of 2016.
“The euro area economy has now expanded for four consecutive years and growth has become increasingly resilient as it has broadened across sectors and countries,” the ECB said in the report.
“Euro area growth is supported primarily by domestic demand, although tailwinds from the external environment have increasingly lent support to the outlook,” the bank said.
The European Central Bank will decide to wind down its government bond purchases based on inflation even if the spreads for any country would rise as a consequence, ECB Executive Board member Peter Praet said.
“As a central bank, we conduct monetary policy for the whole of the euro area,” Praet, who is also the ECB chief economist, said in an interview to the German magazine Der Spiegel.
“If the spreads for a particular country rise, that’s not a monetary policy problem.”
The pan-European Stoxx Europe 600 index advanced 0.05 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 0.04 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.29 percent.
The DAX of Germany climbed 0.15 percent and the CAC 40 of France rose 0.15 percent. The FTSE 100 of the U.K. declined 0.11 percent, but the SMI of Switzerland finished…