Battle to save the positive momentum the European markets

LAST UPDATE: 13.45

Following the negative start, European stock markets in the region and in the UK are moving upwards, while Frankfurt and Paris are reaping the losses, trying to save the momentum from last Friday that brought them gains of more than 2%, erasing the heavy losses of previous amid fears that the aggressive turn of US and European central banks into tighter policies will hit global growth.

Investors continue to assess the outlook for inflation and interest rates as well as geopolitical developments on the continent, especially after Finland announced on Sunday that it would apply to join NATO, in a historic move for the Nordic country, which until now it has pursued a policy of neutrality for decades.

Joining the military alliance will “maximize” Finland’s security following Russia’s invasion of Ukraine in February, President Sauli Niinisto said on Sunday. Russia warned last week that it would retaliate if Finland joined NATO, but Moscow did not specify what that might be.

In this climate, the pan-European index Stoxx 600 declines by 0.2% to 432 points. The basic resources sector strengthened by 1.8%, while the shares of household items fell by 0.7%.

In the individual dashboard, the German DAX falls by 0.66% to 13,930 shares, the French CAC 40 notes a drop of 0.4% to 6,340 points. while the British FTSE 100 gains 0.1% to 7,425 points.

In the periphery, the Italian FTSE MIB adds 0.1% to 24,080 points and the Spanish IBEX 35 increased by 0.3% to 8,360 points.

In the individual sharesthe Italian water pump company Interpump Group is at the top of the Stoxx 600 with a rise of 6.5%.

On the other hand, the British technical company Diploma is down 6%, despite the fact that the company announced an increase in its profits and revenues and a larger dividend to shareholders.

In the scope of results, Ryanair recorded losses of 355 million euros in the 12 months to March due to the pandemic, but stressed that it is impossible to accurately predict anything other than a hope of a return to “reasonable profitability” this year.

The British bakery and fast food chain Greggs, stressed that cost pressures increased, as it announced an increase in first-quarter sales, which were more favorable in relation to trade volume restrictions due to the coronavirus, in the corresponding period of 2021.

In corporate news, the French Renault announced that it has agreed to sell its activities in Russia and its share in the Russian car industry AvtoVAZ. Renault has said it will sell all of Renault Russia’s 67.69% stake in AvtoVAZ to NAMI, a state-owned car research and development company.

In macro of the day, the eurozone announced trade deficit for the fifth consecutive month in Marchas rising energy prices due to the war in Ukraine, increased the value of imports, according to data from the European Union statistical office.

The eurozone trade deficit stood at 16.4 billion euros in March, compared with a surplus of 22.5 billion euros a year ago. Imports rose 35.4% year-on-year in March, higher than the 14% year-on-year increase in exports.

In Germany, the outstanding balance of companies in manufacturing is at an all-time high, according to a survey released today, as businesses struggle to meet high demand due to supply problems. Even without a new order, production could continue for 4.5 months, Ifo said, citing the results of a survey in which about 2,000 companies took part between April 7-22.

Mixed signs in Asia-Pacific markets, with China experiencing the biggest losses after disappointing macro, as factory activity and retail sales plummeted in April due to the country’s pandemic outbreak. In addition, the unemployment rate rose to 6.1% in April, the highest level since February 2020 and higher than the government’s target for 2022, at 5.5%.