The main European stock markets lost the momentum of the last two sessions and recorded small losses on Tuesday, while the focus of interest is the nationalization of EDF with the French governmentis paying 12 euros per share, a total of 9.7 billion euros, to buy a 16% stake in the privately held company.
As reported by Reuters, the French Finance Ministry noted that the offer represented a 53% premium to the closing price on July 5, before the government announced the planned nationalization, and added that the total value of the offer amounted to 9.7 billion euros.
The French state already owns 84% ​​of EDF, which has faced unplanned outages, delays and cost overruns in building new reactors and electricity tariff caps imposed by the government to protect French consumers from rising electricity prices. EDF’s stock is rallying 15% in today’s trading to top the Stoxx 600.
Meanwhile, all eyes are now on the European Central Bank’s meeting in Frankfurt on Thursday, with policymakers set to announce the first rate hike in 11 years but facing a backdrop of slowing economic growth amid Russian war in Ukraine and the consequent threats to energy supply.
The coming recession will not be “normal”, but it will come, a strategic analyst commented
In this climate, the pan-European index Stoxx 600 slipped 0.3% to 416 points, with the technology sector losing 1.2%, while healthcare stocks added 0.8%.
In the individual boards, the German DAX loses 0.45% to 12,900 units, the French CAC 40 the British also falls by 0.56% to 6,055 units FTSE 100 shows losses of 0.45% at 7,190 points
In the periphery, the Italian FTSE MIB moves around -0.2%, while below 0.1% are the losses for the Spanish IBEX 35at 7,955 units.
In the field of results, Novartis announced that sales and profits fell in the second quarter and the group backed its estimates for 2022. The Swiss pharmaceutical group reported net profit of $1.69 billion, down from $2.89 billion a year ago. Core operating income was $4.27 billion in the quarter, down from $4.35 billion a year ago.
The Norwegian telecommunications company Telenor announced profits for the second quarter which came in higher than estimates, and restated its estimates, although it will try to bring rising costs under control in the second half of the year.
In addition, the Swedish truck manufacturer, Volvo, reported a bigger-than-expected rise in second-quarter earningsand stressed that it had successfully mitigated the effects of supply chain disruptions and higher material costs.
Sta macro of the day, UK unemployment was unchanged in the quarter to Maysignaling that the country’s labor market remained tight even as economic growth slowed.
The UK unemployment rate stood at 3.8% in the quarter, unchanged from the previous quarter, according to figures from the statistics office.
Source: Capital
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