European Movers: ASM Holding, Lufthansa, Nordex, Persimmon, Telecom Italia

Bridgette Randall
07 Jul, 2022
New York City

European stock markets scaled higher and the euro struggled after the release of U.S. Federal Reserve policy meeting deliberations. 

The DAX index gained 1.8% to 12,832.46, the CAC-40 index added 1.7% to 6,009.68, and the FTSE 100 index advanced 1.3% to 7,199.05. 

Benchmark indexes in Frankfurt, Paris, and London opened higher after the Federal Reserve policymakers suggested restrictive policy stance and faster interest rate hikes at the next meeting. 

The policy committee members proposed to lift rates by 50 o r75 basis points at the next meeting on July 26. 

The strong commitment to tame inflation supported the market sentiment overcoming the worries that the Fed's aggressive action may lead to a recession.  

Automakers and banks led the gainers.

HSBC Holdings, Commerzbank, BNP Paribas and Natwest Group increased between 2% and 3%. 

Volkswagen, BMW, Renault, and Daimler Benz advanced between 3% and 5%.  

Resource stocks gained after iron ore prices rose for China delivery. 

Glencore, Antofagasta, and Anglo American surged between 6% and 7%. 

ASM Holding rose 4.2% to 446.52 euros after South Korea based Samsung Electronics reported its strongest June quarter since 2018. 

Nordex SE gained 7.5% to 8.45 euros after the German wind turbine maker said new orders drove total orders to 1.8 GW compared to 1.534 GW a year ago. 

The company received a total of 346 wind turbines for projects in fifteen countries and Europe accounted for approximately 58%, Latin America 31% and North America 11%. 

The strongest individual markets in Europe were Germany, Poland and Spain. 

Lufthansa AG increased 4.7% to 5.77 euros after logistics entrepreneur Klaus-Michael Kuehne increased his stake in the state controlled carrier to 15% from 10%. 

Telecom Italia SpA added 1% to 26 euro cents after the company laid out a detailed plan to separate its fixed network infrastructure from services. 

Shell Plc added 3.9% to 23.97 euros after the oil refiner and explorer said rising refining margin is expected to add one billion dollars earnings to its refining business. 

Persimmon Plc declined 6.1% 1,751.30 pence after the U.K.-based home builder said first-half revenues are estimated to decline to