European stock markets traded positively
Stock indices of Western European countries are growing steadily today, recovering from last week’s falls.
Investors are still worried about forecasts of a global economic recession amid persistently high inflation and aggressive measures by the largest central banks to contain it. Nevertheless, the market appeared to buy the shares that fell in price after the sale at the beginning of this week and during the previous week, writes Bloomberg.
Meanwhile, reports of problems with the operation of Nord Stream put pressure on traders. The prospects for a reduction in energy supplies to Europe are one of the main reasons for the growing economic crisis in the region.
Investors are also watching the dynamics of the British pound and government bonds. On Monday, the British currency paired with the US dollar updated a historical low on expectations of tax breaks in the country. Last week, Britain’s new Chancellor of the Exchequer, Quasi Kwarteng, announced a sweeping tax cut that would affect individuals and businesses and increase the budget deficit for the current fiscal year by more than £70bn. The pound against the dollar is growing by 1%.
The composite index of the largest companies in the Stoxx Europe 600 region rose by 1.16% by 11:00 Moscow time and amounted to 393.25 points.
The British stock index FTSE 100 grows by 0.61%, the German DAX – by 1.29%, the French CAC 40 – by 1.32%. The Italian FTSE MIB rose 1.06%, while the Spanish IBEX 35 rose 0.79%.
Among the growth leaders in the Stoxx 600 index, shares of the Italian Nexi S.p.A. are traded. (+6.8%). The company, which specializes in payments, expects to generate free cash flow of 2.8 billion euros between 2023 and 2025, which can be used for M&A deals and share buybacks.
The shares of the German energy company Uniper SE (+10.6%) and the Swiss network of online pharmacies Zur Rose Group AG (+6.7%) are also actively rising in price.
Meanwhile, shares of the British Admiral Group (LON:ADML) PLC (-6%), which specializes in auto insurance, are traded among the fall leaders.
Bank of Cyprus Holdings, the largest bank in Cyprus, fell 10% on the news that the private equity fund LSF XI Investments LLC (Lone Star) does not intend to improve the offer to buy the bank.