European Markets Advance In Search of Better Days Ahead

Bridgette Randall
09 Sep, 2022
Frankfurt

Benchmark indexes in Europe extended weekly gains after rising for the second day in a row as investors looked beyond the latest rate hike and the ongoing economic slowdown. 

Trading in energy markets dominated market sentiment for stocks as European governments to begin to intervene in energy prices. 

Natural gas prices dropped 6% and extended weekly decline to 5% and the European Union energy committee is considering temporarily suspending power derivatives and implementing price caps. 

Brent crude oil fell for the second week in a row after the European Central Bank's aggressive rate hike and widening activity restrictions in China, the largest importer of the commodity. 

Brent crude oil traded above $92 a barrel and fell 1% in the week, the second weekly decline in a row, but rebounded from the 7-month low of $87.30. 

The DAX index added 1.4% to 13,088.21, the CAC-40 index increased 1.4% to 6,212.33, and the FTSE 100 index advanced 1.2% to 7,351.07. 

The benchmark SMI ended with a gain of 109.92 points or 1.02% at 10,900.24.

The DAX and the CAC-40 gained more than 3%, the SMI increased 1.5% and the FTSE 100 added 1% for the week. 

The euro jumped above the parity and traded at $1.004 and the British pound inched up to $1.16. 

Industrial production in France declined for the first time in three months in July. 

Industrial production fell 1.6% from June after rising 1.2% in the previous month, France's statistical agency Insee said Friday.  

Consumer prices in Norway unexpectedly eased in August but wholesale prices continued to rise, Statistics Norway said Friday. 

Consumer price inflation eased to 6.5% in August from 6.8% in July, driven by a 10.3% rise in food and non-alcoholic beverage prices. 

In a separate report, the statistics agency said wholesale prices accelerated to 77.3% in August from 73.6% in July.