European stock market has been steadily growing for several days in a row
2023.01.13 05:03
European stock market has been steadily growing for several days in a row
By Kristina Sobol
Budrigannews.com – Supported by healthcare and banking stocks as well as upbeat UK economic data, European shares rose on Friday and were close to a nine-month high.
Investors were anticipating big U.S. bank earnings when the pan-regional gained 0.6% at 0918 GMT.
After data showed that the British economy grew by 0.1% in November, helped by an increase in World Cup drinkers and video game sales, the probability that it has already entered recession was reduced by 0.6%.
According to data, Germany’s economy likely remained stagnant in the fourth quarter of last year and grew by 1.9% for the entire year 2022. This suggests that Europe’s largest economy might just get out of a recession this winter.
After data indicated a slowdown in inflation in the euro zone and the United States, which may allow central banks to slow the pace of their monetary policy tightening, European shares were heading toward a second straight weekly gain, in an upbeat start to January and the new year.
Michael Hewson, chief market analyst at CMC Markets UK, stated, “It is a direct consequence of the slightly more bullish outlook that markets are taking with respect to the overall wider economic outlook.”
“At the moment, all boats are lifted by a rising tide.”
After a difficult 2022 when concerns about an economic slowdown and rising interest rates hammered these industries, rate-sensitive tech and retail stocks have led gains so far this year, rising 14% and 15%, respectively.
Novo Nordisk (NYSE:) was the healthcare stock that contributed the most to the index’s rise on Friday. Roche Holding AG and A/S (OTC:) in early trading, gaining nearly 1.5%.
Investors’ nervousness ahead of U.S. big banks’ fourth-quarter earnings later in the day caused banking stocks to gain 1.1%.
Enel, Inc. after its CEO was quoted as saying that the Italian power utility company could secure up to 5 billion euros ($5.4 billion) for investment from REPower EU energy funds in addition to the 3.5 billion euros in EU recovery funds that it had already won, the stock gained 0.7 percent.
After receiving a profit warning for the fourth quarter, Kindred Group, an online gaming company, saw its shares fall 16.8%.
