Rally continues in Europe, UK announcements expected

Posted on October 17, 2022 at 11:19

PARIS, Oct 17 (Reuters) – Europe’s main stock markets are trading in the green in early trading on Monday, the positive trend being supported mainly by the energy compartment in anticipation of UK budget announcements and a fresh flurry of company results. In Paris, the CAC 40 was up 0.26% at 5,947.08 at around 09:10 GMT. In London, the FTSE 100 gained 0.38% and in Frankfurt, the Dax rose 0.27%. The EuroStoxx 50 Index gained 0.22%, the FTSEurofirst 300 0.49% and the Stoxx 600 0.38%. The rebound in equity markets does not mean recessionary fears have disappeared, however volatility remains persistent with the index rising 1.78% to 30.29 on the Stoxx 600. United States, the CBOE index also exceeds 32 points. Following JPMorgan, Citigroup and Wells Fargo, Bank of America will publish its quarterly results on Monday, while Tesla, Netflix and Johnson & Johnson, among others, will be released later this week. According to Refinitiv data, earnings for S&P-500 companies are expected to grow an average of just 4.1% in the three months through September, compared with a gain of 11.1% in the prior quarter, due to particularly the impact of inflation. Over the weekend, several officials from the major central banks stressed the need for rapid interest rate hikes to continue, despite the risk of recession. In the United Kingdom, plunged into financial turbulence since the presentation at the end of September of a “mini-budget” that contemplated tax cuts and aid to families and companies without detailing its financing, the pound sterling rises again and the yield on bonds falls sharply on Monday before the presentation of fiscal and tax measures by the new finance minister. The Bank of England, which ended its emergency bond-buying program on Friday, said on Monday that liquidity continued to be available through its other operations. Among the main sectors of the European rating, utilities (+1.08%) and energy (+0.75%) show one of the strongest increases, awaiting an improvement in the demand for raw materials in China. China’s central bank on Monday extended maturing medium-term loans and kept interest rates unchanged as Chinese President Xi Jinping assured the country’s economic policy would remain accommodative at the opening of China’s congress. on Sunday.Chinese Communist Party (CCP). In individual values, Safran (+1.85%), Thales (+2.07%) and Airbus (+1.20%) make up the top three of the CAC 40, while Hermès (-0.82%), L ‘Oréal (-0.72%) and LVMH (-0.76%) show the largest decreases. In the rest of Europe, Credit Suisse advanced 0.82%, as the Swiss bank agreed to pay $495 million to end an investigation in the United States. Hargreaves Lansdown plummeted 7.681% after the resignation of its managing director Chris Hill, with the British investment platform also being the subject of a complaint linked to the Woodford fund. (Written by Claude Chendjou, edited by Sophie Louet)

Vince Fernandez

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