Major stock indices in Europe recover

European stocks are trading with a moderate increase, aided by fading fears about the long-term consequences of Brexit.

Yesterday, EU's Tusk confirmed that Britain not officially notified the EU of its intention to withdraw from the Union and there are no negotiations on any future relationship. Meanwhile, German Chancellor Merkel said that it is difficult to determine the future relations of Great Britain and the EU, but for the single European market will be a tangible loss.

However, experts of the International Monetary Fund warned that the expected British withdrawal from the EU bears the risk of reducing the economic outlook in Germany. "Britain is an important economic partner for Germany and the change in the economic relations between the largest economie in Europe and the second largest member of it can not go unnoticed". Earlier, the IMF published a forecast for GDP growth in Germany, raising the estimate for 2016 by 0.2% to 1.7% of GDP. However, the forecast for 2017 was lowered by 0.1 percentage points to 1.5%.

Support for indices also provides statistics on Britain and the euro zone. Final data provided by ONS showed that UK GDP grew by 0.4 percent in the first quarter, confirming the last assessment and forecasts. Consumer spending rose by 0.7% (the fastest pace in almost a year), while exports fell by 0.4% and business investment declined by 0.6%. The services sector - a large part of the economy - grew by 0.6%. Overall, GDP growth slowed down in comparison with the 4th quarter, when economic expansion of 0.7% was recorded. In annual terms, GDP grew by 2.0% in the 1st quarter 2015, after rising 1.8% in the 4th quarter (revised from + 2.1%). Last change coincided with forecasts.

However, a preliminary report from the Eurostat showed that in June, consumer prices in the eurozone rose by 0.1% after falling 0.1% last month. Analysts had expected the index to remain unchanged. Higher prices were recorded for the first time in five months. Meanwhile, the core consumer price index, which does not take into account the volatile energy and food prices, rose in June by 0.9%, which was slightly faster than in May (+ 0.8%), and more than forecasts ( +0.8 percent). The June rate growth was the highest since March 2016. The report also stated that prices of services recorded the largest growth in June - 1.1% versus + 1.0% in May. Meanwhile, the prices of food, alcohol and tobacco increased by 0.9% after a similar increase in May. The cost of non-energy industrial goods increased by 0.4% compared to 0.5% in May. Energy prices fell 6.5%, the pace has slowed sharply compared to May (-8.1%).

The composite index of the largest companies in the region, Stoxx Europe 600, up 0.2%, recovering all the early losses, which reached 0.9%. Since the beginning of the month the index fell by 5.8%, the worst result since January 2016. For the second quarter the index has lost about 3%.

Shares of mining companies shows the maximum growth among the 19 industry groups, aided by the increasing Anglo American Plc quotes and Glencore Plc.

Banks shares fall, mainly due to the falling value of Royal Bank of Scotland Group Plc. Today, Morgan Stanley downgraded the stock to 'hold'

The capitalization of Deutsche Bank AG fell 1.8 percent after it became known that the bank failed the stress tests conducted by the Federal Reserve. Shares of Banco Santander SA, which also did not meet the requirements of the Federal Reserve, fell 1.2 percent.

At the moment:

FTSE 100 6,386.21 +26.15 + 0.41%

CAC 40 4,217.19 +21.87 + 0.52%

DAX 9,622.24 +9.97 + 0.10%