European Markets Look Beyond Energy and Economic Worries

Bridgette Randall
24 Aug, 2022
Frankfurt

Benchmark indexes in Europe closed higher and investors reacted to local economic and corporate news. 

Traders also looked ahead to comments from the U.S. Fed Chair Jerome Powell on Friday and anticipated hawkish tone in cooling inflation. 

Moreover, the U.S. Fed officials stepped up inflation rhetoric ahead of Powell's comments.

Federal Reserve Bank of Minneapolis President Neel Kashkari said Tuesday that the inflation is much more entrenched and at a higher level in the economy and  the central been needs to be more aggressive in bringing it under control. 

In the region's news, Iceland lifted its lending rate again, Poland's jobless rate was steady in July and consumer confidence in the euro zone rebounded slightly. 

Iceland's central bank lifted its key lending rate for the fourth time this year. 

The 7-day term deposit rate by 75 basis points to 5.5%, the level last seen in May 2017. 

Poland's jobless rate in July was stable at 4.9%, the nation's statistical office reported Tuesday. 

Consumer confidence in the euro zone recovered to -24.9 in August from the record low of 27.0 in July, according to the flash estimate released by the European Commission on Tuesday. 

The DAX index increased 0.2% to 13,220.06, the CAC-40 index rose 0.4% to 6,386.76, and the FTSE 100 index fell 0.2% to 7,471.51. 

Resource stocks closed lower despite the rise in energy prices in the region. 

Brent crude oil traded above $100 a barrel mark and natural gas futures for October delivery rose 8.2% to 295.85 euros per megawatt hour. 

Rising real estate industry woes in China knocked down Antofagasta, Glencore and ArcelorMittal between 1% and 2%.

CTS Eventim AG rose 2.5% to 55.50 euros after the event ticketing and live event management company reported revenues surged in the first-half and the second quarter revenues surpassed the previous high in 2019. 

Revenues jumped to 734.4 million euros in the first-half 2022 compared to 65.3 million euros a year ago and higher than 696.6 million euros in the first-half of 2019 

Revenue in the second quarter increased to 595.1 million euros from 45.7 million euros a year ago and 413.9 million in the comparable quarter in 2019.

Lookers PLC surged 11.2% to 83.40 pence after the auto dealer reported first-half sales increased to 2.23 billion pounds from 2.15 billion pounds a year ago. 

New vehicle sales in the period declined 5.6% to 970 million pounds and used vehicle sales rose 16.7% to 1.2 billion pounds.

"Trading during July and August has been in line with expectations. Margins remain at H1 levels and the Group continues to maintain a strong order book for the remainder of 2022," guided the company in the trading update. 

Skanska AB declined 0.7% to 160.65 after the Swedish engineering company signed a contract with the U.K. National Highway to upgrade a 6.6 km road of the A46 Newark Bypass in the Midlands.