At the auction on Wednesday, stock European indicators show spectacular growth against the backdrop of optimistic sentiments of market participants.
At one point, the composite index of leading European companies STOXX Europe 600 rose by 1.1% to 424.74 points.
Britain's FTSE 100 rose 0.97%, France's CAC 40 jumped 1.43%, Germany's DAX gained 0.55%, while Italy's FTSE MIB and Spain's IBEX 35 added 1.7% and 1.1%, respectively.
What affects quotes?
European investors actively picked up the positive dynamics of world markets. This week, traders are looking forward to US inflation data. Experts predict that in the past month, annual inflation in America slowed to 8.1% from 8.5% in March.
Market analysts are sure that the latest information on inflation will be an important stimulus for the growth of leading stocks, since. strong economic data will allow the US Federal Reserve to limit rate hikes to bring inflation under control. Even a slight decline in inflation, economists assure, will be evidence that its level has reached its highest point and is starting to fall.
Another important upswing factor for the securities market could be corporate news from eurozone companies.
Thus, since the beginning of trading on Wednesday, stock quotes of the largest German manufacturer ThyssenKrupp AG have already soared by 9.1% due to the highest semi-annual financial performance in the last decade in the second financial quarter.
The focus of European investors is also internal statistics for the region. According to the German Federal Statistical Office, consumer prices in the country rose by a record 7.8% in annual terms in April. At the same time, the inflation rate in monthly terms amounted to 0.7%.Top favorites and underdogs
The share price of the German tour operator TUI AG rises by 4.5% on Wednesday. The day before, the company's management announced plans to reach a profitable level by the end of the current financial year.
At the auction in Frankfurt, the value of securities of the American tobacco concern Philip Morris fell by 0.1%, while in Stockholm the quotes of the Swedish tobacco and cigar manufacturer Swedish Match rose by 8.8%. The reason for such a spectacular movement of shares on the stock exchanges was the announcement of Philip Morris management about the purchase of Swedish Match for $16 billion.
Germany's largest energy giant, E.ON SE, fell 1.8% despite the company's first-quarter revenue soaring 60%.
The capitalization of the German energy company Siemens Energy AG is reduced by 5%. In the second quarter of the current financial year, Siemens' net loss increased eightfold.
The capitalization of the French manufacturer of trains and trains Alstom SA falls by 7.3%. Even the strong corporate reporting of the company could not push the quotes up: in the current financial year, Alstom SA's revenue grew by 76% due to more than doubling the volume of orders.History of trend reversal
As for the results of trading on Tuesday, the European stock indexes also showed steady growth after a sharp decline on Monday. Yesterday, investors' anxiety began to subside, and the market began to gradually return to cautious purchases.
Thus, following the results of the trading session on the eve of the composite index of leading European companies STOXX Europe 600 rose by 0.68% - up to 420.29 points. By the way, the day before, the indicator ended the day at a two-month low.
Britain's FTSE 100 rose 0.37%, France's CAC 40 rose 0.51%, Germany's DAX gained 1.15% and Italy's FTSE MIB added 1.04%.At the same time, the key factors that pushed the price of securities down - a permanent rise in inflation, a slowdown in economic growth, geopolitical tensions between Ukraine and Russia, severe restrictive measures in China and the prospects for tightening monetary policy by the US Federal Reserve - remained.
Traders understand that in the near future the markets will continue to be under the pressure of high volatility, and unpredictable events in the world can set a new trend for exchanges at any time.
The securities of European banks showed the highest results yesterday. Thus, the share price of UniCredit soared by 5.5%, Deutsche Bank quotes rose by 1.6%, BNP Paribas - by 2.2%, BBVA - by 1.3%, and Raiffeisen Bank International - by 4.2%.
At the same time, analysts are confident that the spectacular rally in the banking sector will not last long, because an increase in inflation and a decrease in economic activity will negatively affect the activities of banks in the near future.
Quotes of the German pharmaceutical concern Bayer AG rose by 5.4% the day before. The company released strong quarterly earnings on Tuesday, showing its first-quarter net income up 57% and revenue up 19%.
The value of securities of the British energy company Centrica gained 3.9%. The company's managers said that its profit this year will be close to the upper limit of the previously announced range of 6.7-10.8 pence per paper.
The capitalization of French luxury goods manufacturers LVMH, Kering and Hermes grew by the end of trading on Tuesday by 1.3%, 0.1% and 0.2%, respectively.
The price of shares of the aircraft manufacturing concern Airbus increased yesterday by 0.9%. Since the beginning of 2022, deliveries of the company's products have reached 190 units, in April Airbus received orders for 98 aircraft.
