Shares of London Stock Exchange Group jumped by 9.6% after the company reported that new sanctions against Russia would have minimal impact on its operations. Furthermore, LSE reported its operating profit had doubled in 2021.
Deutsche Lufthansa AG lost 8.2% after the German airline warned it could not present an outlook for 2022 due to the war in Ukraine and the COVID-19 pandemic. Lufthansa narrowed its losses in Q4 2021 four-fold. The strong earnings report failed to give support to the company's stock.
The market capitalization of Telecom Italia SpA slumped by 14%. The Italian telecommunications company reported a loss of €8.64 billion.
Shares of German pharmaceutical company Merck KGaA gained 1.3%. The company's earnings increased by 54% in 2021. Furthermore, Merck announced it would pay record-high dividends to its shareholders in 2022.
Kion Group AG stock increased by 4.3% following the release of an outlook for 2022 which greatly exceeded expectations.
Market players on Friday focused on the situation in Ukraine. The escalating war in Eastern Europe has caused strong volatility in the market throughout the week. Since Monday, European indexes lost 3-6%, despite a brief upward correction on Wednesday.
Investors are anxious about the impact of the war on the global economy. Furthermore, US and EU sanctions against Russia were more far-reaching and severe than previously expected.
Traders digested the statement by Fed chairman Jerome Powell that rising energy prices would boost inflation and put pressure on the US economy.
According to Powell, the Federal Reserve is planning to hike the interest rate by 25 basis point during its meeting on March 15-16. If inflation rises further, the Fed would increase the rate by more than 25 points, the chairman said.
