European stocks rise on good company reports
2022.12.21 05:15
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European stocks rise on good company reports
Budrigannews.com – Adidas (OTC:) pushed up European stock prices on Wednesday. and Puma gained following Nike’s positive results (NYSE:), while sentiment was lifted as well by the improved economic outlook for the Eurozone.
At 0922 GMT, the region-wide index was up 0.8 percent.
After the Ifo economic institute stated that the outlook for employment in Germany, the largest economy in Europe, was positive for the first quarter of next year, the index increased by 0.7%.
According to data released on Tuesday, the Ifo survey comes after consumer confidence in the euro area increased in December.
According to Davide Oneglia, Chief Europe Economist at TS Lombard, “the market was pricing a very bad recession with potentially rolling blackouts and stop of industrial plans due to insufficient supply of energy, and now the market is pricing out a bit of that.”
“The winter is just beginning, so we don’t know what will happen, but markets are feeling more optimistic about the outlook at the moment, which is good for stocks,”
In a month marked by hawkish rhetoric from major central banks and concerns about rising COVID-19 cases in China, global equities edged higher.
After two months of gains supported by hopes that a cooling inflation would permit the Federal Reserve and other central banks to slow down on interest rate hikes, the STOXX 600 has lost 2.8% so far in December.
Adidas and Puma, two consumer discretionary companies, gave the STOXX 600 a big boost on Wednesday after Nike beat expectations for revenue and profit for the quarter.
Adidas and Puma saw their shares rise by 8.5% and 9.3%, respectively, while JD, which is listed on the NASDAQ: Retail benefited from a 6.9% increase in sports. On the STOXX 600, the three businesses were among the top gainers.
With a gain of 0.8 percent, industrials and banks both contributed to the gains.
More Restrained growth of global shares
The Dutch health technology company Philips announced that independent tests on its respiratory devices that were involved in a major global recall had shown positive results, which resulted in a 0.6% increase in the healthcare sector. The sector was helped by a 3.3% increase in Philips.
