European Indexes Climb After Rate and Earnings Anxieties Recede

Bridgette Randall
08 Feb, 2023
Frankfurt

European markets rebounded and the euro held stable after Fed Chair Jerome Powell sounded less hawkish in recent comments on Tuesday. 

Cautious trading supported tentative market rebound and investors reacted to a fresh batch of corporate earnings. 

 

French Employment Growth Paused In Fourth Quarter

Private payroll employment was stable in the fourth quarter, following a 0.6% rise in the previous quarter, the statistical office INSEE said Wednesday.

Employment was stable after seven consecutive quarters of increase. 

Net salaried job additions increased 3,000 in the fourth quarter following 119,100 jobs or 0.6% in the preceding quarter. 

Private payroll employment surpassed the level seen at the end of 2021 by 1.5% or 304,900 jobs.

Temporary jobs increased 0.8% or 6,500 jobs after 1.9% or 14,900 in the previous quarter. 

The temporary employment level is 4.5% higher than its pre-crisis level but 1.6% lower than its end-2021 level.

 

Italian Retail Sales Declined In December 

Italian retail sales declined 0.2% in December on the month, reversing the 0.8% rise in November, the statistical office ISTAT data showed on Wednesday. 

Retail sales rose 3.4% in December from a year ago, slower than 4.4% pace in November but sales have been rising since March 2021. 

Overall 2022 retail sales value increased 4.6% from the previous year but sales volume fell 0.8%  on a 4.2% drop in food goods, by a 1.9% rise in non-food products. 

 

European Indexes 

The DAX index increased 0.8% to 15,446.28, the CAC-40 index rose 0.2% to 7,145.44 and the FTSE 100 index added 0.5% to 7,906.91. 

The euro inched lower to $1.072, the British pound edged down to $1.205 and the Swiss franc traded near 92.12 U.S. cents. 

Brent crude oil rose 28 cents to $83.97 a barrel and the Dutch TTF Spot Price decreased 3.4% to 53.50 per MWh. 

 

Europe Stock Movers 

ABN Amro Bank NV jumped 11.5% to €16.30 after the Dutch bank announced a stock repurchase program. 

Operating income in the fourth quarter declined 19% to €1.86 billion from €2.28 billion a year ago. 

Net income in the quarter dropped 36% to €354 million from €552 million and diluted earnings per share declined to 37 euro cents from 56 euro cents a year ago. 

The Dutch bank proposed to pay 67 cents per share as a final dividend equivalent to €601 million to shareholders on record on April 24 and payable on May 17, reflecting a total dividend of 99 cents for 2022. 

The company proposed a new stock repurchase plan of €500 million commencing from February 9th and ending no later than June 2023. 

Societe Generale SA declined 4.7% to €26.71 after the French bank said net income in the fourth quarter declined 35.1% to Є1.16 billion from Є1.79 billion in the previous year. 

TotalEnergies SE declined 1.2% to €56.83 after the French energy giant said earnings in the fourth quarter dropped 44% to $3.3 billion. 

Ashmore Group Plc rose 2.4% to  279.51 pence after the UK-based asset manager reported a sharply lower half-year profit. 

In the first-half ending in December. assets under management declined 34% to $57 billion from $87 million in the previous year. 

Adjusted net revenue in the first-half declined 22% to £107.7 million from £138.2 million a year ago. 

After-tax profit declined 54% to £44.3 million from £95.4 million and earnings per share declined 6.1 pence from 13.3 pence in the previous year. 

Smurfit Kappa Group fell 2.8% to 3,389.50 pence after the paper-based packaging company reported an increase in profit in 2022 but unit volumes declined. 

Revenue in the second-half increased 18% to €6.43 billion and pre-tax income increased 5% to €524 million from €500 million a year ago. 

Full-year 2022 revenue increased 27% to €12.8 billion and pre-tax increased 42% to €1.29 billion from €913 million a year ago. 

Earnings per share rose to €3.65 from €2.63 in the previous year. 

The paper company also reported a decline in box volume in 2022 by less than 2% following higher prices and tough comparison in the previous year.