Efforts to recover in the euro markets – Profits of 0.5% Stoxx 600

LAST UPDATE: 14.00

European stock markets attempted to recover on Tuesday, after yesterday’s almost 4% dip in the Stoxx 600 at its worst meeting since June 2020.

Concerns remain about the geopolitical risk of a Russian attack on Ukraine and a more aggressive stance by the Federal Reserve in trying to tame persistently high inflation.

On the Ukrainian front, US President Joe Biden held talks with European leaders on Monday afternoon as the United States considered developing military personnel and equipment in the region as the security situation on Ukraine’s border with Russia deteriorated.

On the other side of the Atlantic, most analysts expect the Fed to wait in the first session of 2022, which begins today, to make its first rate hike in March since the outbreak of the pandemic. Analysts now expect the Fed to raise four interest rates this year, by 25 basis points at a time, from three initially estimated, as the rally in inflation forces the central bank to take urgent action. Goldman Sachs does not rule out the Fed to proceed with more than 4 interest rate hikes in 2022.

Volatility hit “red” at yesterday’s Wall meeting with major US market indicators recovering just before the close of trading and while earlier they had fallen into deep red, with the Dow Jones losing more than 1,100 points and the Nasdaq technology plunges 4.9% to the day low.

In this climate, the pan-European index Stoxx 600 adds 0.55% to 458 points, with the core resource sector strengthening by 2.4% and leading the profits.

In the individual dashboards, the German index ΔΑΧ adds 0.5% to 15,085 points, the French CAC 40 strengthened by 0.76% to 6,840 points and the British FTSE 100 gains 0.81% to 7,355 points.

In the periphery, the Italian FTSE MIB records gains of 0.22% at 26,030 points and the Spaniard IBEX 35 adds 0.75% to 8,480 points.

In the individual shares, the Swiss software company Logitech recorded a “jump” of more than 11%, after exceeding the expectations for quarterly sales and increasing its prospects for the whole year. Ericsson adds 7.5%, after exceeding the expectations for the profits of the fourth quarter, which were strengthened by the high demand for 5G network equipment.

At the bottom of the European blue chip index, the Danish IT consulting firm Netcompany is falling more than 6% after the interim announcement of its profits in the year.

In the corporate news, Credit Suisse announced on Tuesday that fourth-quarter earnings will be “negatively” affected by increased litigation provisions. The Swiss bank said its profits were expected to be zero due to a surplus of about 500 million Swiss francs ($ 545 million).

The British Post Royal Mail announced on Tuesday that it expects that will need to cut about 700 administrative staff jobs, as part of its restructuring plan. At the same time, the company cut its output outlook for the whole year due to the cost of the structural change plan.

It is noted that the stock exchanges in the Asia-Pacific region record heavy losses, with Japan, South Korea and Australia losing more than 2%.