Wednesday, January 26, 2022

European stocks high on recovery optimism; Philips Bux Trends by

© Reuters.

by peter nurse – European stock markets traded higher on Wednesday, continuing the global rally inspired by Fed Chairman Jerome Powell amid confidence in an economic rally despite a flood of Omicron variant COVID cases.

At 4:30 AM ET (0930 GMT), Germany was up 0.5%, France up 0.5% and the UK 0.8%.

Most sectors traded in positive territory in Europe on Wednesday, with basic resources, even as less-than-inflation data from China boosted hopes of easing monetary policy there, real estate developers and other sources of raw materials. Large buyers supported.

It also helped in his confirmation hearing for a second term in charge of the US central bank, when he said the US economy could handle tighter monetary policy even in the face of the new Covid-19 surge. However, he did not announce a swift change in the policy already indicated for the relief of the market.

A new test of sentiment is expected with the release of US data for December, which is expected to warm up to 7% year-on-year.

Back in Europe, Jay Sainsbury’s (OTC:) stock was up 1.4% after the British supermarket group raised its full-year profit forecast by at least 9% after stronger-than-expected food sales at Christmas.

Dunlum (LON:) stock rose 6.9% after British home furnishing retailer said market expectations were “materially ahead” of a record performance in the festive period.

PageGroup (LON:) stock rose 1% after a recruiter slashed its full-year profit forecast for the third time in six months on a spurt in demand for long-term hiring amid a staff shortage.

On the flip side, Philips (AS: ) stock fell 10% after the Dutch health technology company said it expected a nearly 40% drop in its fourth-quarter core profit, driven by a global shortage of electronic components and a massive withdrawal. is affected by. Ventilator.

Volkswagen (DE:) stock fell 1.6% after the German auto giant said its car deliveries fell 8.1% in 2021 to just under 4.9 million amid severe supply chain constraints.

Still, despite stock market optimism, the growth in Omicron’s cases in the region has shown some signs of waning. Germany on Tuesday recorded a new daily record for Covid-19 cases, the World Health Organization said, and more than half of people in Europe could contract the new version in the next two months.

Oil prices traded higher, continuing the previous session’s sharp gains, pushing benchmark contracts to their highest level since the highly permeable Omicron variant emerged in late November.

However, supply data from the American Petroleum Institute suggested caution may be warranted. While 1.1 million barrels fell last week, a massive increase of 10.9 million barrels suggests the impact Omicron’s outbreak could have on US drivers.

Investors are now waiting for official data on US crude supply, due later in the day.

As of 4:30 AM ET, futures were trading 0.8% higher at $81.87 a barrel, while the contract was up 0.6% to $84.19. Both contracts jumped about 3.5% in the previous session.

Additionally, it fell 0.1% to $1,816.65/oz, while trading higher only at 1.1367.

Nation World News Desk
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