European Markets Advance In Cautious Trading

Bridgette Randall
20 Jun, 2022
New York City

European markets rebounded after falling sharply in the previous week. 

The DAX index gained 0.1% to 13,189.19, the CAC-40 index advanced 0.2% to 5,896.14, and the FTSE 100 index rose 1.5% to 7,117.38.

French President Emmanuel Macron's party and allies lost their absolute majority in the National Assembly after the second and final round of election.  

The coalition, Ensemble!, won 245 of 577 legislative seats, leading all other parties and coalitions but fell short of the absolute majority, according to a report released by the French interior ministry . 

President Macron won a second term in April and will be the first president without a parliamentary majority since 2000 putting his legislative agenda of business and pension reforms in jeopardy. 

ECB President Christine Lagarde reaffirmed the central bank's commitment in raising rates two times this summer and fighting the widening interest rate spreads in the region. 

The central bank will "ensure that inflation stabilizes at our 2% target over the medium term," Lagarde said  while addressing the European Parliament in Brussels. 

German producer prices in May surged a record 33.6% after rising at 33.5% in April, according to the latest data released by Destatis in Germany. 

On a monthly basis, prices rose 1.6% after rising 2.8% in April, the report noted. 

Airbus SE increased 0.95% to 95.01 euros on news that the aviation company has entered into talks with Qatar Airways to resolve A 350 passenger plane legal and safety dispute. 

Valneva SE rose 25.2% to 9.96 euros after the U.S. based Pfizer agreed to acquire a 8.1% stake in the French specialty vaccines maker for 90.5 million euros. 

SThree jumped 6.4% to 339.50 pence after the specialty staffing company said profit in the full-year ending in November is expected to be ahead of expectations by 5%. 

Revenues in the first-half increased 25% to 203.1 million pounds and revenues in Germany rose 22%, in the U.S. increased 21%, and in the Netherlands surged 41%.