European Markets Rebound After Norway Energy Workers Return to Work for Now

Bridgette Randall
06 Jul, 2022
New York City

European markets rebounded after natural gas prices dropped after Norwegian workers called off strike for now. 

The DAX index increased 1.3% to 12,565.63, the CAC-40 index advanced 1.6% to 5,886.09, and the FTSE 100 index added 1.6% to 7,137.84. 

Oil and gas workers at Equinor called off strike after Norway intervened and proposed a mandatory arbitration. 

However, the union has not called off the proposed strike at other fields scheduled from July 9. 

The Gudrun, Oseberg South and Oseberg East fields have started run-up of production and are expected to reach full production of 89,000 equivalent barrels of oil in two days. 

Natural gas prices eased to 169.05 euros per megawatt after rising as much as 177 euros in the previous session. 

Eurozone retail sales rose at a slower than anticipated pace in May, the eurostat data showed on Wednesday. 

On a monthly basis, retail sales increased 0.2% in May from the revised 1.4% in April. 

Food, drinks and tobacco sales contracted 0.3% in May compared to a 2.3% fall in April.

On a yearly basis, retail sales growth eased to 0.2% in May from 4.0% in April. 

Germany's factory orders increased 0.1% in May after falling 1.8% in April, the destatis data showed on Wednesday. 

On a yearly basis, new orders declined 3.1% in May, slower than 5.3% fall in April, 

On a monthly basis, domestic orders declined 1.3% but foreign orders rose 1.6% after non-euro area orders increased 3.7%. 

Construction activities in Germany declined for the third month in a row in June, the latest survey from S&P Global showed on Wednesday.

Rising building costs and higher interest rates dragged the activities in the sector. 

The construction Purchasing Managers' Index increased from a nine-month low of 45.4 in May to 45.9 in June.

Any reading below 50 indicates contraction. 

UK construction activities dropped to a nine-month low in June on rising materials cost and higher interest rates, the survey from S&P Global reported on Wednesday. 

The S&P Global/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index fell to 52.6 in June from 56.4 in May. 

Home building was the weakest among all construction activities for the fourth month in a row and contracted for the first time since May 2020. 

Just Eat Takeaway.com increased 16.8% to 1,383.0 pence after Amazon offered a one-year free delivery from restaurants listed on its U.S. unit Grubhub for one year. 

The deal is expected to be earnings neutral in 2022 but is expected to be positive for earnings and cash flow in 2023, the company's press release noted on Wednesday. 

Trainline Plc increased 23.9% to 349.18 pence after the online booking site lifted its sales outlook on the European travel rebound driven by a surge in demand from the U.S.  

The company said rail ticket sales are up 16% in the first four months to June in the fiscal 2023. 

The ticket platform operator said full-year ticker sales are expected to increase between 18% and 27% and sales to increase between 22% and 31% from fiscal 2020. 

Abrdn Plc gained 5.4% after the U.K. based investment management firm announced a share repurchase plan of 300 million pounds. 

Evotec SE increased 2.6% to 24.51 euros after the company set up a joint venture with Boehringer Ingelheim and bioM