European Markets Lose Early Momentum

Bridgette Randall
27 Jun, 2022
New York City

European markets advanced in volatile trading and commodities prices traded higher on the expectations of rising demand from China. 

The indexes in the region traded at a two-week high on the easing of aggressive rate hike worries.  

The DAX index increased 0.6% to 13,197.61, the CAC 40 index declined 0.3% to 6,055.47, and the FTSE 100 index advanced 0.5% to 7,244.03. 

The indexes opened sharply higher following a surge in New York in Friday's trading and the S&P 500 index closed up more than 3%. 

European markets began to lose momentum after the first 45 minutes of trading in Frankfurt, Paris, and London. 

Higher commodities prices kept the positive market sentiment in check and the elevated wholesale prices also affected the market sentiment. 

Spain's producer price index in May soared 43.6% in May following 44.5% in April, the statistical office INE reported on Monday. 

Finland's producer prices accelerated in May to 31.7% after rising at 29.2% in April, according to data from Statistics Finland on Monday. 

Norway's retail sales fell 8.8% in May on an annual basis after adjusting for seasonality factors and faster than 2.4% decline in April, Statistics Norway reported today. 

Commodities stocks led the gainers in European trading. 

Antofagasta, Angle American, and Glencore advanced between 1% and 2%. 

BP Plc and Shell Plc added more than 1%. 

Intesa Sanpaolo jumped 1.4% after the bank received an approval from the supervisory committee of the European Central Bank to buy back 3.4 billion euros of its own shares. 

Sandvik AB closed up 3.2% to 172.95 Swedish kroner after the company agreed to acquire Portugal-based  Frezigest, SGPS. 

Prosus NV soared 13.8% to 60.36 euros after the company said it plans to sell its $134 billion stake in China-based Tencent, the parent of Wechat.  

 

Asian Markets Close at 2-week High 

Markets in Asia closed higher tracking the gains in the U.S. markets. 

The Nikkei index soared after tech stocks led the gainers and Softbank soared 3.7 and. ship builders closed higher. 

Indexes in China advanced after large industrial companies in declined less than expected in May 6.5% after falling at 8.5% in April, the National Bureau of Statistics said on Monday.   

The Nikkei index increased 1.4% to 26,871.27, the Hang Seng index soared 2.4% to 22,229.52, and the Sensex index advanced 0.8% to 53,161.28.