In Wednesday's trading, key European indices showed strong gains. The German DAX is up by 5.32% after a permanent four-day decline. By the way, the DAX fell by more than 8% over the past week.
The STOXX Europe 600 index of Europe's leading companies rose by 2.5% to 425.66 points. The British FTSE 100 gained 2.1% to settle at 7,112.6 points, while the French CAC 40 jumped by 5.01% to 6,283.33 points.
The main reason for the spectacular rise in key European indices was the strong rally in the banking sector on the back of a stronger euro against the dollar. On Wednesday, UniCredit, BNP Paribas, Deutsche Bank shares soared by 8.3%, 7.97%, and 5.56% respectively.
In Wednesday's trading, key European indices showed strong gains. The German DAX is up by 5.32% after a permanent four-day decline. By the way, the DAX fell by more than 8% over the past week.
The STOXX Europe 600 index of Europe's leading companies rose by 2.5% to 425.66 points. The British FTSE 100 gained 2.1% to settle at 7,112.6 points, while the French CAC 40 jumped by 5.01% to 6,283.33 points.
The main reason for the spectacular rise in key European indices was the strong rally in the banking sector on the back of a stronger euro against the dollar. On Wednesday, UniCredit, BNP Paribas, Deutsche Bank shares soared by 8.3%, 7.97%, and 5.56% respectively.
The securities of the German sportswear manufacturer Adidas climbed by more than 8%. The company's revenues rose by 15.2% to 21.23bn euros in the year to date. In addition, management of Adidas announced a 10% increase in dividend payments to €3.3 per share and projected sales growth of 11-13% in 2022.
Shares in German tyre and automotive components maker Continental jumped 4% following the release of the company's financial report. According to the latest figures, Continental posted a net profit last year and resumed paying dividends to shareholders.
The UK's Prudential Plc gained 6.8%. The insurance company increased its operating profit by 16% year-on-year in 2021. The main driver behind Prudential Plc's spectacular results was the strengthening of its business in the Asian region.
The capitalization of Russian miner Polymetal soared by 33%. The company's management reported smooth production processes in Russia and Kazakhstan despite Western countries' sanctions.
Shares in German postal and logistics company Deutsche Post AG rose 5.7% on a report of a 14% increase in net profit in the fourth quarter last year. In addition, the day before, the company announced the launch of a new €2bn buyback programme.
Another important upside factor for Europe's leading indicators was the steadily rising oil prices, which exceeded $130 a barrel on Wednesday morning. The day before US President Joe Biden announced that the White House had banned energy imports from the Russian Federation. The UK authorities have also announced their intention to move away from Russian oil by the end of 2022. In the meantime, the European Union plans to reduce the bloc's energy dependence on energy supplies from the Russian Federation.
On this news, the price of black gold instantly hit its highest levels since July 2008. In addition, decisive measures by Western countries carry the risks of further increases in the global cost of oil and a deterioration of the industry's supply chains.
At the same time, Fatih Birol, head of the International Energy Agency, said the IEA was ready to bring more oil to market by releasing additional stocks.
In recent days, the increase in world oil prices has been partly held back by news that US black gold inventories rose by 2.8 million barrels over the week. At the same time, market analysts predicted a steady decline in the indicator. Experts believe that this state of affairs was the result of consumers' negative reaction to higher prices at petrol stations and, as a consequence, a refusal to travel.
This week's investor focus is on the upcoming European Central Bank (ECB) meeting scheduled for Thursday. Market participants will be keeping a close eye on how the ECB will deal with the persistently rising inflation rate and the multiple difficulties caused by the military conflict in Ukraine.
In addition, the Russian and Ukrainian foreign ministers are scheduled to meet on March 10 in Turkey, which the world markets are expecting with great positivity and hope.
