European mixed equities; Focus on earnings and the US CPI By


© Reuters

By Peter Nurse – European stock markets traded mixed on Thursday, boosted by generally strong corporate earnings, but on a cautious backdrop following the sharp rise in US inflation.

As of 4:15 am ET (0915 GMT), Germany was trading down 0.1%, while that of the UK climbed 0.3% and France by 0.2%.

The European quarterly earnings season continued at full speed on Thursday, with most companies reporting generally positive results.

Generali (MI 🙂 stock rose 1.5% after Italy’s top insurer beat market expectations with its nine-month results and said it had around € 1 billion to deploy to mergers and acquisitions opportunities.

Siemens (DE 🙂 inventory rose 1% after posting better-than-expected sales and orders in its fourth quarter as the German engineering giant overcame supply chain bottlenecks.

Aviva (LON 🙂 shares rose 0.9% after the UK insurer said it was on track to return at least £ 4bn ($ 5.4bn) to shareholders, while Shares of Delivery Hero (DE 🙂 rose 1.5% after the German online catering company lifted its revenue outlook for 2021 to the high end of a previous forecast.

On another side, Burberry (LON 🙂 the stock fell 7.9% after the British luxury brand said sales in Europe remained under pressure due to falling tourist levels, even after reporting strong growth in China mainland, South Korea and the United States.

On Wednesday, the United States jumped 6.2% year-on-year last month, climbing at the fastest pace since 1990, strengthening the case for faster Federal Reserve policy tightening.

The tone is more cautious in Europe, with the region’s central bank perceived to be far behind the Fed in terms of controlling its accommodative monetary policy. Just last week, President Christine Lagarde said it was highly unlikely that the European Central Bank would hike interest rates next year because inflation remains too low.

Elsewhere, the UK grew 1.3%, the weakest three-month growth since Britain’s lockdown in early 2021. The country’s economy remained 2.1% lower than that at the end of 2019, a greater deficit than in the other countries of the Group of Seven Germany, Italy and France.

Crude prices edged up on Thursday, rebounding from losses from the previous session on concerns that the sharp rise in US inflation, boosted by high energy costs, will prompt the Biden administration to release more inventory strategic.

Gasoline and distillate inventories continued to decline, the US Energy Information Administration said on Wednesday, while crude inventories rose by just over one million barrels, after the government released 3, 1 million barrels of the strategic oil reserve.

President Joe Biden said he has asked the National Economic Council to work to reduce energy costs, which could lead to new versions of SPR.

As of 4:15 a.m. ET, futures were trading up 0.3% to $ 81.56 a barrel, after falling 3.3% on Wednesday, while the contract gained 0.6% to 83, $ 12, after dropping 2.5% in the previous session.

Additionally, it rose 0.9% to $ 1,864.55 / oz, as it traded down 0.1% to 1.1465.

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