European Markets Accelerate Gains, German Inflation Eases

Bridgette Randall
10 Aug, 2022
Frankfurt

European markets accelerated gains after the U.S. and German inflation eased but stayed elevated. 

German consumer price growth eased in July to 7.5% from 7.6% in June and matched the preliminary estimates, according to the Federal Statistical Office data on Wednesday. Consumer prices increased 7.9% in May. 

On a monthly basis, prices rose 0.9% in July despite the fall in energy prices and two subsidies provided by the German government. 

The U.S. consumer prices rose at a slower pace 8.5% in July on an annual basis, according to the report released by the U.S. Bureau of Labor Statistics. 

The inflation eased but stayed near the 4-decade high after the energy prices fell. The inflation index on a monthly basis was unchanged. 

The DAX index increased 0.8% to 13,646.60, the CAC-40 index increased 0.4% to 6,517.47, and the FTSE 100 index added 0.3% to 7,510.40. 

Vestas Wind Systems rose 10.4% to 26.91 euros after the company agreed to sell its converters and control panels business to KK Wind Solutions. 

Aviva PLC jumped 11.2% to 4604.0 pence after the insurance company reported higher-than-expected earnings in the first-half and released a plan to return more cash to stockholders with the release of full-year results. 

 The insurance company increased first-half dividend 40% from a year ago to 10.3 pence a share. 

Ahold Delhaize NV jumped 6.3% to 28.29 euros after the Dutch supermarket chain reported net sales in constant currencies rose 6.4% and at nominal exchange rate rose 15% to 21.4 billion euros. 

The food retailer lifted its interim dividend to 46 euro cents from 43 cents a year ago and lifted its cumulative free cash flow estimate to 7.5 billion euros from above 6 billion euros between 2022 and 2025. 

Net income increased 11.7% to 603 million euros or 59 cents a diluted share from 540 million euros or 53 diluted share a year ago.    

TUI AG declined 0.1% to 143.20 pence after the tour operator said load factor in the June quarter increased to 92%, exceeding 90% in the same quarter in 2019. 

The tour operator handled 5.1 million customers in the quarter compared to 4.1 million a year ago. 

Revenues in the quarter rose to 4.4 billion euros compared to 649 million a year ago. Net loss in the quarter shrank to 27 million euros from 670 million euros a year ago. 

At the end of June, the company repaid