With gains of more than 1%, European stock markets moved on Wednesday in an upward reaction after heavy losses on Tuesday, with political developments in the United Kingdom monopolizing investment interest.
Concerns about the risk of European economies slipping into recession sent European stock markets plunging more than 2% yesterday and the euro to a near 20-year low.
Investor interest turned today to political developments in the United Kingdom following the surprise resignations of two of Boris Johnson’s top ministers. The British Prime Minister appointed Nadhim Zahawi as Chancellor of the Exchequer and Steve Barclay as Health Secretary following the departures of Rishi Sunak and Sajid Javid last night.
Johnson’s political survival will ultimately depend on whether “rebels” in the Conservative party win a majority to launch another confidence vote in the coming weeks.
On the board, the pan-European Stoxx 600 index gained 1.4% to 406.13 points.
Germany’s DAX gained 1.6% to 12,598.71 points, France’s CAC 40 rose 1.45% to 5,878.95 points, while Britain’s FTSE 100 gained 1.4% to 7,122.85 points.
In the region, Italy’s FTSE MIB gained 1.2%, while Spain’s IBEX 35 rose 0.8%.
By the end of the day, German factory orders rose in May, defying analysts’ expectations that they would ease due to runaway inflation and uncertainty from the war in Ukraine.
In particular, manufacturing orders rose 0.1% on a monthly basis, according to data from the German Economy Ministry. Economists had expected a 0.3% drop in orders.
Source: Capital
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