European markets rose yesterday, hitting their highest level in nine months amid warnings from central banks that despite declining inflation on both sides of the Atlantic, interest rates are likely to remain high. Meanwhile, among the favorable developments of the day was news that the UK and the EU had agreed to intensify efforts to resolve their differences over Northern Ireland.

For example, the pan-European Eurostoxx 600 index closed up 0.5%, and its overall gain since the beginning of the year reached 6.6%, as a mild winter in Europe raises expectations of an easing of the energy crisis. London’s FTSE 100 closed up 0.15% slightly, the Frankfurt Xetra DAX up 0.34% and the CAC 40 up 0.28%. And Milan’s FTSE MIB closed up 0.5%. Real estate and retail stocks rose sharply, offsetting inventory losses. Marks & Spencer rose 2.9% after announcing it plans to open 20 new stores in the 2023-2024 fiscal year as part of a $587 million investment plan. Swiss construction chemicals maker Sika jumped 3.5% after announcing the sale of your division. which he sells to the British chemical and energy company INEOS.

The overall growth of the pan-European Eurostoxx 600 index since the beginning of the year reached 6.6%.

The growth is due to the decline in inflation in the euro area from December to 9.2% compared to 10.1% in November. At the same time, in the US, it fell to its lowest level in 12 months or more. But Federal Reserve and ECB officials insist that core inflation, which excludes volatile energy and food prices, remains alarmingly high and any talk of lower borrowing costs is premature.