empty
 
 

Forex Analysis & Reviews: European stocks are on the rise. The technology sector and French alcohol boast high profits
time 25.11.2021 05:51 PM
time Relevance up to, 26.11.2021 05:45 PM

This image is no longer relevant

The value of European stocks is rising on Thursday thanks to the growing profits of companies in the technology sector, the record performance of the French manufacturer of alcoholic beverages Remy Cointreau and the steady demand for the products of the Swedish manufacturer of radiation therapy equipment Elekta. The pan-European STOXX 600 index rose 0.5% by the time this material was prepared, thereby rebounding from the three-week lows reached on Wednesday. The German DAX rose by 0.4%, the British FTSE 100 - by 0.1%.

The securities of the French liqueur and champagne company Remy Cointreau jumped in price by 12.25% today, reaching €209.8. By the time the review was prepared, the company's share was valued at €207.6.

Quarantine restrictions during the summer period were significantly relaxed, home consumption increased significantly, premium cognac produced by the company began to enjoy special demand during this period. For these reasons, the operating profit of Remy Cointreau in the first half of the year, which ended on September 30, unexpectedly jumped by 104.5%, reaching the level of €212.9 million (or $238.8 million). By the way, experts expected the publication of much lower profit figures - approximately at the level of €168 million.

The management of Remy Cointreau pleasantly surprised its investors with the announcement of record earnings. From now on, the heads of Remy Cointreau look with confidence into the future of their company and expect that their products will be among the favorites among buyers in the premium spirits market.

Technology stocks of the euroregion also determined the overall positive mood of the European securities market. Tech sector shares rose in value by 1.17%. This growth occurred for the first time after a rise in bond yields brought down the fast-growing sector at the beginning of this week.

The securities of the Swedish manufacturer of equipment for radiation therapy and radiosurgery Elekta jumped in price by 6.58%, which was facilitated by a positive report on a drop in profits for the period from August to October. Experts expected a much stronger drop in profits. Probably, today there is a growing demand in the world for equipment for the clinical treatment of cancer and brain diseases, which is why Elekta products continue to be in constant demand.

The shares of the Swiss company Swiss Life, which specializes in life insurance, also showed growth. The securities added 3.6% to the value, which was facilitated by the announcement of the start of a new buyback of shares for 1 billion Swiss francs (or $1.07 billion) and an increase in the dividend payout ratio.

But the shares of the Norwegian company Adevinta, the world's largest operator of online ad portals in Europe, on the contrary, unexpectedly fell by 2.2%. The reason was the news that revenue in the third quarter was less high than analysts expected.

According to the statements of the world media, Europe is currently at the epicenter of the pandemic, strict quarantine restrictions have been introduced in many European countries. For example, Italy and Austria have significantly restricted the freedom of people who do not want to take the COVID vaccine. France intends to announce tougher measures. As for Germany, earlier data showed weaker economic growth in the third quarter than analysts predicted. In addition to this, moderate consumer sentiment is noted, despite the onset of the Christmas and New Year shopping season

Andreeva Natalya,
Analytical expert of InstaForex
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • Ferrari from InstaForex
    Top up your account with at least $1,000
    join the contest and win Ferrari
    F8 Tributo
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and win $1,000
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Commodity market encouraged by China easing quarantine measures

Oil prices entered a bullish correction on Thursday, all thanks to the news that China will finally lift pandemic restrictions and, perhaps, healthy growth in demand for energy resources will

Natalia Andreeva 22:49 2022-12-01 UTC+2

GBP/USD. Spreading wings does not mean conquering heights. Plans for 2023

Jerome Powell, as expected, triggered volatility in the markets. Investors are now more confident in their assumptions about the Fed's interest rate, and the dollar index is down

Anna Zotova 22:49 2022-12-01 UTC+2

The "flying" dollar: the sound of the fall. The Fed is on the defensive

By the end of the week, the greenback surrendered the lion's share of its positions, unable to withstand the onslaught of the Federal Reserve, which is set to further tighten

Larisa Kolesnikova 08:07 2022-12-01 UTC+2

USD/JPY: that's it, no movie!

Federal Reserve Chairman Jerome Powell's dovish speech pulled down the dollar. Yesterday, the U.S. currency experienced a resounding sell-off on all fronts, but saw the biggest loss against

Аlena Ivannitskaya 07:53 2022-12-01 UTC+2

US stock market closes higher, Dow Jones gains 2.18%

At the close of the New York Stock Exchange, the Dow Jones rose 2.18% to a 6-month high, the S&P 500 rose 3.09% and the NASDAQ Composite index rose 4.41%

Thomas Frank 03:40 2022-12-01 UTC+2

European stocks rise on strong eurozone data

Following Wednesday's results, broad-based gains saw the pan-European index rise after the release of new statistics on the eurozone. Thus, at the time of writing, the pan-European index Stoxx

Irina Maksimova 23:00 2022-11-30 UTC+2

EUR/USD. Inflation whispers, the ECB's rat race

The euro is struggling to develop a rally despite the weakness of the U.S. currency. Growth is limited by incoming data on the euro bloc, indicating that the ECB will

Anna Zotova 23:00 2022-11-30 UTC+2

USD/JPY: calm before the storm

The dollar-yen pair is passing the time for the second straight session in anticipation of a strong impulse. It can happen right now. The Fed chief's speech should persuade

Аlena Ivannitskaya 08:09 2022-11-30 UTC+2

The pound is afraid of drowning, but it aims to move up and continues its journey

The British currency is experiencing notable volatility this week, moving back and forth - from a tangible rise to a moderate decline. According to analysts, sterling has a chance

Larisa Kolesnikova 07:58 2022-11-30 UTC+2

US stock market closed mixed, Dow Jones up 0.01%

The US stock market ended trading on Tuesday mixed due to the strengthening of the sectors of oil and gas, finance and raw materials. The market demonstrates against the backdrop

Thomas Frank 03:43 2022-11-30 UTC+2
Can't speak right now?
Ask your question in the chat.