Business

European stocks hit best week in almost eight months According to Reuters



© Reuters. FILE PHOTO: A German stock price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 10, 2022. REUTERS/Staff

By Shreyashi Sanyal and Ankika Biswas

(Reuters) – European shares recorded their best weekly performance in nearly eight months on Friday, largely driven by bets on smaller Federal Reserve rate hikes and easing restrictions. COVID-19 in China.

The index ended the session up 0.1% at an 11-week high, with financial services, mining and retail stocks leading the way.

The index marked a weekly gain of 3.7%, mainly after data on Thursday showed U.S. consumer prices cooled more than expected in October, leading to expectations that the Federal Reserve The Federal Reserve may adjust the size of future rate hikes.

“The market is just waiting for signals that the initial interpretation of yesterday’s US CPI numbers is correct,” said Andrea Cicione, head of research at TS Lombard.

Furthermore, news of China easing some of its strict COVID-19 rules has buoyed investor sentiment, boosting shares of mining companies and leading retailers. luxury.

Chinese luxury giant Hermes International (OTC :), Kering (EPA 🙂 and LVMH increased from 2.4% to 2.8%. Richemont also rose 10.5% on better-than-expected revenue and margins.

Europe’s basic resources rose 2.6% as base metal prices rose. [MET/L]

“Markets are welcoming more relaxed COVID rules in China, but soaring infection numbers and low vaccination rates mean the road to complete removal of restrictions remains long.” , strategists at ING wrote in a client note.

An upbeat earnings season and hopes of smaller rate hikes from the US central bank helped the benchmark index extend its fourth straight week, as investors brushed aside concerns about the economy. Europe fell into recession.

However, analysts say this margin growth is likely to dry up in Europe over the next few months as high inflation and recession hit the economy.

German inflation continued to rise at an alarming rate as data showed consumer prices, harmonized by comparison with other European countries, were 11.6% higher than in the same period last year in October.

Among stocks, Europe’s largest cell phone tower operator, Spain’s Cellnex, rose 1.6% after posting a 45% rise in main nine-month earnings.

Delivery Hero rose 8.8% as analysts raised their price target for shares of the German takeout company a day after forecasting positively revised core margins for next year. and reassure investors about achieving profits.



Source link

news7d

News 7D: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button