Categories: Business

European stock markets close mixed, after German industry data

European stock markets close mixed, after German industry data

European stock markets closed mixed this Tuesday (7), as investors pondered the balance sheets of large companies with data that indicated negative performance of German industry.

The CAC 40, in Paris, fell 0.07%, to 7,132.35 points, and the FTSE MIB, in Milan, closed up 0.36%, to 27,118.74 points. In Madrid, the Ibex 35 index rose 0.14% to 9,172.40 points. Finally, on the Lisbon Stock Exchange, the PSI 20 rose 0.28% to 5,923.57 points. Quotes are preliminary.

In London, the FTSE 100 rose 0.36% to 7,864.71 points. BP shares led the index gains, up nearly 8%, after the oil company reported that it had a record profit in 2022.

In an analysis sent to clients, AJ Bell says bank and energy stocks will become more attractive to investors if optimism about interest rates being near the top proves wrong. “In some ways, today’s movement in the FTSE 100 already reflects that investor thinking.”

According to CMC Markets, Shell was also boosted by BP’s results, up more than 2%.

In Frankfurt, the DAX index closed down 0.16%, at 15,320.88 points.

With industrial production data from Germany below market expectations, both Capital Economics and Oxford Economics pointed to a possible recession in the country in the first quarter of 2023 – since the Gross Domestic Product (GDP) of the fourth quarter of 2022 in the country already recorded an unexpected drop.

The view of a contraction in the economy affects the markets mainly due to the drop in consumption.

Despite this, director of the European Central Bank (ECB) and president of the French Central Bank, François Villeroy de Galhau told the Bloomberg that the eurozone should avoid recession this year.

In France, companies were affected by protests and strikes in several cities across the country against the pension plan proposed by the president, Emmanuel Macron.

The movement caused disruption of energy, oil, transport and gas services in the country. Eletricite de France was down by more than 0.1%, while the TotalEnergies refinery, despite also registering a strike, was up by almost 3%, both on the Paris Stock Exchange.

Still looking at companies, the French bank BNP Paribas rose by more than 2.5% on the Paris Stock Exchange, after disclosing higher revenue in the fourth quarter of 2022 compared to the third quarter of the same year, in addition to announcing a plan to buy back shares of $5 billion.

Source: CNN Brasil