The broad-based major European indices closed mostly higher in Tuesday’s trading session, as rising luxury goods retailers and utilities companies helped bolster the markets.
In economic news, a new report from the Organization for Economic Co-operation and Development said that economic growth in the euro area is expected to remain subdued.
“Despite supportive monetary conditions, investment weakness will persist, reflecting low demand, banking sector fragilities and uncertainties about European integration,” said the report. “High unemployment and modest wage growth will hold back private consumption, while exports will be hampered by soft global trade and by weaker growth in the United Kingdom following the Brexit referendum.”
The report also said that inflation is expected to rise “very gradually,” and that major differences in growth and unemployment prospects will persist throughout the euro area.
In Germany, the inflation rate, as measured by the consumer price index, is forecast to be up 0.8% for November, according to the Federal Statistical Office (Destatis). Destatis also said that the index of import prices fell 0.6% in October, compared with the same month last year. Meanwhile, the index of export prices was down 0.1% in October, compared with the year-ago month.
In France, the National Institute of Statistics and Economic Studies (INSEE) reported that GDP rose 0.2% in Q3, after declining 0.1% in Q2. The household consumption expenditure was flat for the second consecutive quarter, while gross fixed capital formation (GFCF) increased 0.2%.