European Markets Rebound to Close Up 2%

Bridgette Randall
19 Jul, 2022
New York City

European markets advanced amid mixed economic reports in the region and rising hopes that the natural gas flow will resume this week from Russia. 

Eurozone inflation accelerated in June according to the final data released by the Eurostat on Tuesday. The final data matched the flash estimate. 

The harmonized Index of consumer prices in June increased 8.6% on a yearly basis, faster than the 8.1% rise in May, final data from Eurostat showed on Tuesday.

The eurozone construction output increased 0.4% in May from April when the output was revised to a decline of 1.0% from the previous estimate of 1.1% decline, the Eurostat reported on Tuesday. 

On a yearly basis construction output increased to 2.9% in May from 2.8% in April. 

The UK unemployment remained unchanged in the three months to May, according to the Office of National Statistics on Tuesday. 

The jobless rate was 3.8% at the end of the three-month period to May matching the rate for the period ending in April. 

The DAX index surged 2.7% to 13,308.41, the CAC-40 index soared 1.8% to 6,201.22, and the FTSE 100 index gained 1.01% to 7,296.28. 

The euro rebounded to a two-week high of $1.0236. 

Novartis AG increased 3.7% to 83.32 swiss francs after the drug maker said it no longer expects its Sandoz division. 

Telenor ASA declined 0.8% to 12.40 euros after the Norwegian telecom operator reported a second quarter loss of 1.1 billion kroner compared to 2.19 billion kroner a year ago. 

Electricite de France soared 14.7% to 11.73 euros after the French government offered 12 euros a share to acquire the remaining stake in the nuclear power utility company and nationalize the Europe's largest nuclear power utility. 

The buyout offer of 9.7 billion euros is expected to be completed before the year's end. 

Alstom SA declined 2.6% to 24.14 euros and said  sales in the fiscal year first quarter ending in June increased 8% to 4.0 billion euros and booked 5.6 billion euros of new orders, increasing the order book to 83.4 billion euros. 

The company cited supply chain issues and rising input costs may impact profitability and guided dividend payout ratio between 25% and 35%.  

Kier Group increased 2.5% to 77.20 pence after the construction services company reiterated its full-year outlook.