European stock market growing for third day in a row
2023.01.04 09:11
European stock market growing for third day in a row
Budrigannews.com – On Wednesday, sentiment was lifted by better-than-expected business activity data and a lower inflation reading from France, the second-largest economy in the euro zone.
40 gained 1.3%, while the pan-European gained 0.8 percent.
Business activity in the euro zone contracted less than anticipated, according to data released on Wednesday, indicating that the bloc’s recession may not be as severe as anticipated.
In addition, preliminary data indicated that inflation in France decreased in December from a record high in the previous month, in line with a number of positive indicators, such as rising manufacturing numbers in the euro zone and a slowdown in inflation in Germany.
According to Streeter, “this is continuing the narrative that prices are slowing faster than expected, which is certainly welcome news for the Euro zone as a whole because it eases the pressure on consumers and also businesses.”
Fears of an economic slowdown fueled by rising fuel costs since Russia’s invasion of Ukraine and a reopening of the economy following the COVID-19 pandemic caused the regional STOXX 600 to finish 2022 sharply lower.
Investors are now awaiting the Fed’s December meeting minutes to determine the path the U.S. central bank will take toward tightening monetary policy.
The STOXX 600 record has risen 3% in the initial three exchanging days of the new year, helped areas of strength for by information, facilitating of and any desires for a post-Coronavirus recuperation in China notwithstanding flooding cases.
The index increased as a result of increases in shares of LVMH and Richemont, two luxury companies that are exposed to China.
Banks and insurance companies, which are sensitive to the economy, also led gains in early trading.
Energy shares and miners fell 1.9% and 1.1%, respectively, in line with the decline in crude prices and the UK’s commodity-heavy peers in Europe.
Meanwhile, UK sentiment was impacted by data showing that fresh food prices at British supermarkets in the beginning of December were 15.0% higher than a year earlier.
NASDAQ: Sanofi edged up 0.6% after a French healthcare company said it expected its earnings for the fourth quarter, which will be released early next month, to reflect a boost from flu vaccine sales and foreign exchange movements.
After improving its outlook for 2022, the energy company with headquarters in Switzerland, BKW AG, experienced a gain of 4.8 percent.
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