Positive signs in the European markets

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Positive signs prevail in European stock markets on Tuesday with slight changes, with investors focusing on inflation data in the US.

In particular, the pan-European Stoxx 600 records an increase of 0.19% to 484.51 points while the other pan-European Stoxx 50 gains 0.15%.

On the rest of the board, the German DAX strengthened by 0.24%, the British FTSE 100 adds 0.09% and the French CAC-40 gains 0.30%.

In the periphery, the Spanish IBEX-35 gains 0.43% while the Italian FTSE MIB loses 0.35%.

It is noted that wholesale prices in the US rose again in October. Particularly, the producer price index increased 0.6% in October compared to September, according to official data released today. Economists surveyed by The Wall Street Journal also forecast a 0.6% increase. On an annual basis, the producer price index remained unchanged at 8.6%. Meanwhile, the structural index of producer prices increased to 6.2% from 5.9%.

In business news, Munich Re announced profits for the third quarter almost doubled from the previous year, despite heavy damage from Hurricane Ida and summer floods in Europe, and the prolonged effects of the pandemic. German reinsurance had quarterly net profits of 366 million euros compared to 199 million euros a year ago.

Meanwhile, the German pharmaceutical and chemical company Bayer, returned to profits for the third quarter and stressed that sales increased, mainly due to the recovery of its agricultural activities. The company reported a net profit of 85m euros compared to a net loss of 2.74 billion euros a year ago, when it was facing problems in the agricultural sector.

Alongside, Associated British Foods PLC announced higher earnings for the year ended September 18, as Primark earnings increased, and announced a special dividend alongside the regular dividend. The British group, which controls Primark stores, posted a pre-tax profit of 25 725 million ($ 983.4 million) in 2021, up from 6 686 million a year ago.

In macro, exports to Germany fell for the second month in a row in September, while imports remained virtually unchanged, the country’s statistical office said on Tuesday, according to Reuters, in a further indication that supply chain disruptions are hurting the country’s recovery.

Seasonally adjusted exports fell 0.7% in September to 112.3 billion euros, compared with economists’ estimates that remained unchanged.

At the same time, imports increased by 0.1% to 99.2 billion euros, lower than the 0.6% increase forecasted by analysts.

Meanwhile, the investment climate in Germany improved unexpectedly in November amid expectations that price pressures will ease early next year and growth will recover in Europe’s largest economy.

The ZEW economic research institute announced that its survey of the economic climate among investors rose to 31.7 points from 22.3 points in October.

Estimates spoke of a drop to 20 points.


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