Euro markets closed with mixed signs on Wednesday, as investors assessed the geopolitical scenario after the partial withdrawal of Russian forces from the Ukrainian border, while at the same time all eyes were on corporate results.
In this climate, pan-European Stoxx 600 closed with gains of 0.04% at 467.77 points, with the oil and gas sector leading the profit with an increase of 1.5%, while on the other hand the telecommunications sector fell 1.2%. At the same time, this year is pan-European Stoxx 50 lost 0.16% to 4,137.22 points.
On the rest of the board, the German DAX fell 0.28% to 15,370.30 points, the British FTSE 100 the French lost 0.07% to 7,603.78 points CAC-40 slipped 0.21% to 6,964.98 points.
In the periphery, the Spanish IBEX-35 strengthened by 0.22% to 8,737.20 points while the Italian FTSE MIB closed unchanged at 26,969.32 points.
Energy prices in Europe could rise if Western countries impose sanctions on Russia, with US President Joe Biden saying on Tuesday that a package of sanctions would include reducing European consumption of Russian gas.
Meanwhile, British Prime Minister Boris Johnson said on Wednesday that the United Kingdom would impose sanctions on Russian banks and companies if Moscow launched more aggressive action against Ukraine.
For his part, Russian Foreign Minister Sergei Lavrov said that Moscow would retaliate if Britain did impose sanctions.
Russia, meanwhile, said earlier that it had begun returning some troops to their bases after the end of exercises near the Ukrainian border, reassuring fears of an impending invasion and raising hopes of escalating tensions with the West.
However, Western officials and Ukrainian President Volodymyr Zelensky have warned against the value of Russia’s claims, and NATO on Wednesday accused Russia of increasing troop numbers on Ukraine’s border.
Corporate results were also in the spotlight, with Heineken, Ahold Delhaize and Air Liquide being among the companies that published results today.
Among the best performances today, the share of the Swedish tobacco industry Swedish Match rose by 3.8%, after the company announced a record sales and operating profit for the whole year with a double-digit increase in both revenue and profits.
Umicore shares added 5% after the Belgian company announced an 81% jump in profits for 2021 and optimistic forecasts for 2022.
On the other hand, the share of the Swedish company Vitrolife fell by almost 17% after the announcement of a drop in net profit for the fourth quarter.
Ericsson, meanwhile, fell 14 percent after the company said in an internal investigation that it had found serious breaches of compliance with its operations in Iraq.
At the macro level, the biggest increase in the last 30 years was recorded in inflation in Britain in January, and stood at 5.5% from 5.4% in December. Economists had predicted that inflation would remain unchanged at the level of December, but reached its highest level since March 1992.
Finally, the eurozone’s industrial production increased in December, exceeding estimates despite global pressures on the supply chain and rising import prices. Production from factories, mines and utilities in the region increased by 1.2% in December compared to November, Eurostat said. Economists forecast a 0.1% increase.
Source: Capital
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