23.11.2022 11:42 PM
European stocks rise after surging to previous day's highs

Western Europe's leading stock indicators were mostly positive on Wednesday soon after the release of strong data on the eurozone. In addition, investors are looking forward to the results of the US Federal Reserve's November meeting, which will take place in the evening.

This image is no longer relevant

The composite indicator of the leading European companies STOXX Europe 600 increased by 0.2% - to 437.10 points.

The French CAC 40 rose by 0.08%, the British FTSE 100 rose by 0.4% to a two-month high, while the German DAX dropped by 0.03%.

Rise and fall

Shares of the Swiss bank Credit Suisse Group AG fell by 5.2%. On Wednesday, the lender announced it expects a pre-tax loss of up to $1.6 billion in its fourth quarter.

British chemical company Johnson Matthey dropped by 7.2% after its management reported a drop in net profit in the first fiscal half of the year.

The share price of Prosus NV, a Dutch global investment group, increased by 1.4%. Revenue in the first half of the year climbed by 9% to $16.5 billion.

United Utilities Group PLC, a British water supplies company, rose 0.1% amid a report that pre-tax profits doubled in the first fiscal half of the year.

The share price of the German motor vehicle manufacturer Volkswagen AG ended lower by about 1.3%. The day before, the company's management said it had agreed to a new pay deal with Germany's largest labor union, IG Metall, to increase employees' salaries and pay bonuses of 3,000 euros.

UK pet retailer Pets at Home fell 3.1% amid a decline in half-year profits due to a sharp rise in logistics and energy costs, as well as record inflation in the country.

Market sentiment

European investors are analyzing new data for the region on Wednesday. Thus, according to the preliminary 'flash' reading from S&P Global, the Eurozone PMI Composite Output Index rose to 47.8 points in November from October's 47.3 points. At the same time analysts expected the index to fall to 47 points.

Traditionally, a composite index below 50 points signals a decline in business activity in the industrial and services sector. By the way, in the euro area, the index remains below this mark for the fifth consecutive month.

Meanwhile, Germany's composite PMI rose to 46.4 points in November from October's 45.1 points, the highest since August 2022.

In France, this month's composite PMI fell to 48.8 points from 50.2 points in October. The fall of the index in the country was recorded for the first time since March last year.

An important factor that supported the European stock exchanges on Wednesday was the strong results of the last trading session on the US stock market. On Tuesday, the Dow Jones Industrial Average gained 1.18%, jumping to a three-month high; the S&P 500 was up 1.36%; and the NASDAQ Composite was up 1.36%.

World markets were eagerly waiting for the release of the minutes of the US Federal Reserve's November meeting in order to get a general idea about the state of the American economy.

Let me refresh your memory, following its October meeting, the central bank raised the interest rate by 75 basis points. At the same time, Fed officials also mentioned the prospects of reducing the rate hike during the November and December meetings.

Trading results on Tuesday

Western Europe's leading stock market indicators closed Tuesday in the green zone, hitting several months' highs.

As a result, the STOXX Europe 600 composite index of Europe's leading companies rose 0.73% to 436.22 points, a three-month high.

France's CAC 40 rose 0.35% to a seven-month high, Britain's FTSE 100 rose 1.03% to a peak in more than two months, and Germany's DAX gained 0.29% to its highest level in June.

The British-Dutch oil and gas giant Shell rose 4.8% on the back of a sharp increase in global prices for oil.

Meanwhile, the share price of British oil and gas company British Petroleum soared by 6.5% after analysts of the international financial conglomerate Citigroup raised the rating of BP securities from "neutral" to "buy.

The market capitalization of Italy's largest utility group, Enel, jumped 0.5% on news that it was planning asset sales worth 21 billion euros to reduce its net debt.

Prosus, a major investor in consumer internet companies, collapsed by 3.8%. The company's management said that it expects profit for the six months to September 20 to have dropped by at least 79.9% from the same period last year.

The value of securities of the British pharmaceutical company GSK Plc sank by 0.8%.

Quotes of French oil producer TotalEnergies soared 4.4% after Saudi Arabia denied that it was discussing oil output hike with other producers.

The market capitalization of the British online electronics retailer AO World increased by 16.8%. On Tuesday, the company published an optimistic annual profit outlook and reported an increase in pre-tax losses in the first half of fiscal year 2023, which ended on September 30.

Health care company Fresenius shares rose 1.4% on news of two tranches of bonds totaling €1 billion.

Irish construction materials supplier CRH shares sank 1.3% despite the fact that the company increased its revenues by 13% in January-September and confirmed its EBITDA forecast at $5.5 billion by the end of the year.

On Tuesday, European investors were closely following the news about the alarming epidemiological situation in China.

Local media reported on new outbreaks of COVID-19 in the country. Thus, three deaths from the effects of the coronavirus were recorded in Beijing.

In an attempt to contain the spread of infection, Guangzhou authorities have closed the city's largest district of Baiyun. By the end of the week, public transportation will cease to function in the area, universities will be closed, and local schools will switch to online learning.

Additional and ongoing restrictive measures in China, affecting millions of people in multiple cities, are negatively affecting the country's economic activity.

Irina Maksimova,
Esperto analista di InstaForex
© 2007-2023
Euro vs US Dollar
Select timeframe
Start trade
Start trade
  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
  • 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.
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account

Recommended Stories

Il dollaro annega in un bicchiere d'acqua

L'incertezza sul destino futuro del settore bancario contribuisce alle dinamiche agitate della valuta statunitense. Negli ultimi 2 giorni il dollaro ha mostrato una forte volatilità. Secondo gli analisti, il movimento

Аlena Ivannitskaya 08:49 2023-03-17 UTC+2

Il prezzo del bitcoin continua a scendere

Giovedì mattina, l'oro digitale è iniziato con un movimento laterale. Al momento della scrittura, il Bitcoin oscilla intorno a 24.688$. Ieri nel mercato degli asset virtuali regnava un sentimento ribassista

Irina Maksimova 12:57 2023-03-16 UTC+2

Fragile crescita della coppia USD/JPY

Il rapporto sull'inflazione degli Stati Uniti pubblicato ieri ha dato al dollaro una boccata d'aria fresca. In questo contesto, la coppia USD/JPY ha mostrato un'andamento impressionante, con un balzo

Аlena Ivannitskaya 11:06 2023-03-15 UTC+2

Il mercato azionario statunitense ha mostrato un calo meno significativo del previsto

I principali indici azionari statunitensi sono scesi sui risultati delle negoziazioni di ieri, cosa abbastanza attesa sullo sfondo della situazione nel settore bancario. Tuttavia, non vi è stata alcuna riduzione

16:48 2023-03-14 UTC+2

Decide l'inflazione. 5 scenari per il dollaro a seconda della dinamica del CPI negli Stati Uniti

Ieri il dollaro ha registrato una forte svendita su tutti i fronti mentre il mercato è stato travolto da un'ondata di speculazioni sulla politica meno aggressiva della

Аlena Ivannitskaya 09:22 2023-03-14 UTC+2

Fallimento di SVB: dollaro confuso

Alla fine della scorsa settimana il mercato è stato sconvolto dalla notizia del fallimento della banca statunitense SVB (Silicon Valley Bank). Lo shock più forte nel settore bancario statunitense

Аlena Ivannitskaya 10:35 2023-03-13 UTC+2

GBP/USD. Dollaro nella morsa di contraddizioni

Il dollaro ha rallentato, i dati settimanali sul mercato del lavoro hanno causato un calo del tasso di cambio e una maggiore cautela dei trader in previsione del rapporto importantissimo

Anna Zotova 10:03 2023-03-10 UTC+2

USD/JPY: il duello di venerdì. Chi ha maggiori possibilità?

All'inizio della settimana la coppia dollaro-yen ha mostrato un intenso movimento. Tuttavia, le sue emozionanti avventure non finiscono qui. Gli analisti prevedono una seconda ondata di volatilità per domani

Аlena Ivannitskaya 09:19 2023-03-09 UTC+2

Fed vs dollaro: il confronto continua. La crescita dell'USD è instabile

Dopo la riunione della Fed, la valuta statunitense ha guadagnato fiducia, superando quella europea. Tuttavia, gli analisti si aspettano che questa tendenza svanisca, ritenendo che la crescita del dollaro

Larisa Kolesnikova 09:11 2023-03-09 UTC+2

USD/JPY sta attraversando un campo minato

La settimana in corso promette di essere molto agitata per la coppia dollaro-yen, dato che il mercato si aspetta più trigger importanti contemporaneamente che potrebbero causare forti turbolenze dell'asset nell'una

Аlena Ivannitskaya 09:31 2023-03-07 UTC+2
In questo momento non potete parlare al telefono?
Ponete la vostra domanda nella chat.