Amid gas supply worries, commodities and banks help European stocks soar
European stocks rose on Friday as gains in commodities and bank stocks outweighed worries about economic growth and inflation, while Europe remained wary of disruptions in gas imports from Russia. Russia’s threat to cut off gas supplies to Europe unless buyers pay in rubles from Friday has been dismissed for now, with Moscow saying it will not cut off supplies until new payments are due at the end of April. The pan-European Stox 600 index posted its first quarterly loss in two years last quarter on concerns about the fallout from the war, as well as likely central bank tightening to contain rising inflation.
Mining and oil stocks led the day’s gains, up 18% and 14% respectively in recent quarters as commodity prices rose in the wake of the Ukrainian war. In Ukraine, as peace talks resumed on Friday, Ukrainian forces marched into areas abandoned by the withdrawal of Russian troops in the north. But in the southeast, which Russia says is now the focus of its activities, the Red Cross said it was stuck in aid to the beleaguered city of Mariupol.
The index rose by 0.5% on Friday. Banks were up 1.2% on the day, while Spanish lender Santander rose 2.6% after reconfirming its 2022 profit target. Craig Earlam said: “Markets have been subdued in recent weeks , and after Putin theoretically managed to manage the ruble threat, it could rise today and reduce European gas flows.We put an end to investor concerns for a week.Senior Market Analyst at OANDA.
“Ultimately, we are in a wait-and-see mode as we await progress in negotiations, clarification from the central bank and the upcoming earnings season,” Earlam said. Worries were fueled by data showing eurozone inflation hit 7.5% in March, hitting a record high just months before peaking. “It looks increasingly likely that the ECB will accelerate its tightening plans, as early as July, with deposit rates set at around 1.5% by the end of 2023,” said Andrew Kenningham, chief economist for Europe.
I expect to achieve it,” he said. in capital economics. The market is forecasting a 60 basis point rate hike by the end of 2022. Tech stocks posted their worst performance on inflation fears last quarter, falling 17% on Friday, and it was down another 0 .3%. In France, analysts do not expect much impact as the re-election of President Emmanuel Macron is widely expected, but volatility could also come from the presidential election this month. Among individual stocks, French restaurant and catering group Sodexo fell 9.5% after lowering its forecast for full-year organic sales growth.
Summary of news:
- Amid gas supply worries, commodities and banks help European stocks soar
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