Profits in the European markets are expanding with the guidance of the banks

LAST UPDATE 16:11

The main European indices are gaining momentum with profits exceeding 1% now, with the attention of investors continuing to be focused on Ukraine as they evaluate Powell’s new statements.

In particular, the pan-European Stoxx 600 index rose 0.8% to 458 points, with the banking sector at + 3% while shares in the healthcare sector fell by 0.4%.

In the individual European boards, the German DAX moves to 14,476 units with an increase of 1.05%, the French CAC 40 strengthens by 1.07% to 6,653 and the British by 0.49% moving to 7,477 units.

The picture is similar in the markets of the region, where in Italy the FTSE MIB increased by 1.03% and moved to 24,546 units, as well as the Spanish IBEX which is at 8,463 units with + 0.86%.

Investors’ eyes are fixed on the Ukrainian front, where in recent days there has been no substantial progress in the Moscow-Kiev talks, while in recent developments the Ukrainian president has stated that any agreement will be put to a referendum to be decided by the people of the country.

For his part, US President Joe Biden said that Putin’s Russian counterpart was with his back to the wall and that he would not hesitate to use chemical weapons.

Meanwhile, US Federal Reserve Chairman Jerome Powell said yesterday that the Fed should move “fast” to reduce excessively high inflation, stressing that if necessary the bank will proceed with higher than usual interest rate hikes.

The possibility of a faster increase in interest rates, however, favors the banking sector, with Banco de Sabadell (+ 5.62%), Commerzbank (4.72%) and Deutsche Bank (+ 5.18%) leading the rise.

Finally, another source of concern is the growing number of coronavirus cases in Europe, as the Omicron variant is spreading rapidly.