The European markets closed positively on Wednesday with investors assessing the corporate results and the latest IMF forecasts, while continuing to keep their eyes on the war in Ukraine.
In this climate, the pan-European Stoxx 600 closed with a profit of 0.84% at 460.10 points, with the technology sector leading the profits. At the same time, the other pan-European Stoxx 50 closed at 3,896.81 points with an increase of 1.72%.
On the rest of the board, the German DAX added 1.47% to 14,362.03 points, the British FTSE 100 strengthened by 0.37% to 7,629.22 points and the French CAC-40 closed at 6,624.91 points with an increase of 1.38%.
A similar picture in the region, where the Spanish IBEX-35 gained 0.87% to 8,769.50 points and the Italian FTSE MIB moved up 1.03% to 24,878.23 points.
Wednesday was a busy day in terms of corporate results, with a number of companies announcing quarterly results. Shares of Danone, ASML and Heineken rose more than 5% after exceeding sales expectations.
On the other hand, the share of Rio Tinto fell by almost 5% after the announcement of lower-than-expected iron ore shipments in the first quarter. The company warned that rising inflation, coronavirus lockdowns in China and the war in Ukraine could weigh on its prospects.
Data released by the European Automobile Manufacturers Association (ACEA) on Wednesday showed that new car registrations continued to decline in the EU, falling by around 20% in March.
Investors went on to turn their attention to the war in Ukraine, which has entered a second phase, during which fierce fighting has begun in the east of the country.
Ukraine announced on Monday that Russia’s offensive in the eastern Donbass region had begun, with a top official calling it the “second phase” of the war. The eastern city of Kremlin fell to Russian forces on Tuesday, the region’s governor said, marking the first city to be occupied in this phase of the war.
Investors also assessed the latest pessimistic global economic forecasts of the International Monetary Fund and the World Bank. In particular, the IMF reduced its forecast for global growth by almost one percentage point, while warning that inflation is now a “clear and real risk” for many countries. The Fund now estimates that the global economy will grow at a rate of 3.6% in 2022, compared to its previous forecast of 4.4% growth.
Source: Capital
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