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FX.co ★ European stocks closes the week in a stable positive

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Analysis News:::2022-06-04T06:38:34

European stocks closes the week in a stable positive

During the trading session on Friday, the key stock exchange indicators of Western European countries show steady growth amid the rise of the US stock market.

So, by the time of writing, the French CAC 40 increased by 0.16% to 6510.8 points, the German DAX gained 0.29% and is balancing at the level of 14528.39 points. The UK stock market is closed on Friday due to a bank holiday.

European stocks closes the week in a stable positive

If key European indicators are able to maintain positive dynamics until the end of the trading day, this will be their first two-week growth streak since mid-March 2022.

Meanwhile, the best results among the components of the leading stock exchange indicators were demonstrated by the securities of the German manufacturer of sportswear, shoes and accessories Adidas AG, the value of which soared by 1.8%. At the same time, the list of declines is headed by shares of the Dutch car manufacturer Stellantis NV, which by the time of writing the material had sunk by 0.9%

Reasons for positive investors

The main upward factor for European stock exchanges was economic news from Germany. Data on exports to Germany were published Friday morning, which exceeded experts' expectations by 4.4%. In addition, the country's trade surplus amounted to 3.5 billion euros against the 1.6 billion euros expected by analysts.

European investors also expected the release of the composite PMI business activity index in industry and services in the euroregion in May. According to preliminary scenarios of experts, this indicator decreased to 54.9 points in the past month from April's 55.8 points. Traditionally, a PMI index value above 50 indicates an increase in economic activity in the eurozone states.

The release of the reports will take place against the background of permanently rising inflation, high prices for oil and raw materials and traders' concern about the prospects of an economic downturn.

European traders were also focused on the results of Thursday's trading on the leading US exchanges. The key indicators of the US stock markets reported a significant increase amid expectations of the release of a report on the level of employment in the country. According to preliminary forecasts of analysts, in the past month, the unemployment rate in the United States fell to 3.5% from April's 3.6%, while the number of jobs in non-agricultural sectors of the economy increased by 325,000.

Trading results

As for the results of Thursday's trading session, European stock exchange indicators showed strong growth.

As a result, the aggregate indicator of the leading companies in Europe STOXX Europe 600 increased by 0.57% to 441.23 points.

The securities of the French corporation specializing in system integration Atos SE (+8%), the Irish manufacturer of building materials Kingspan Group Plc. (+6.4%) and the Scandinavian industrial concern Indutrade (+6%) showed the best results among the components of the STOXX Europe 600.

At the same time, the shares of the Danish medical equipment manufacturer Ambu A/S (-6.5%) and the Portuguese energy company Galp Energia SGPS SA (-4.4%) topped the list of declines here.The French CAC 40 increased by 1.27%, and the German DAX gained 1.01%. The UK stock exchanges were also closed on Thursday due to a bank holiday.

Quotes of securities of the French producer of alcoholic beverages Remy Cointreau SA increased by 4.9%. For the fiscal year 2022, which ended in March, the company's revenue soared by a record 30%.

The market capitalization of the French corporation Compagnie de Saint-Gobain S.A., specializing in the production and sale of building materials, soared on Thursday by 4.8%. The company's management announced that it expects an increase in operating profit in the first half of 2022.

The share price of Germany's national airline, Deutsche Lufthansa AG, fell by 0.6%. Austrian Airlines, part of the Lufthansa group, canceled 52 flights due to trade union meetings with the company's staff.

On Thursday, European traders analyzed statistical data on inflation in the region. So, earlier, the Statistical Office of the European Union reported that in the past month, the level of consumer prices in the eurozone soared by 8.1% in annual terms. At the same time, market analysts surveyed earlier predicted an increase of only 7.7%. By the way, the result obtained in May was a record in the history of calculations and exceeded the target of the European Central Bank (2%) by more than four times.

Investors fear that this state of affairs may become a weighty argument in favor of increasing the base interest rates in the eurozone. The next ECB meeting is scheduled for June 9, while traders are watching the central bank's comments, hoping to get signals about the scale of the increase in key rates. The member of the Board of Governors of the European Central Bank, Francois Villeroy de Gallo, said that the central bank should begin to normalize monetary policy amid a permanent increase in the inflation rate in the region.

Analyst InstaForex
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