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European markets fall due to weak eurozone GDP data

European market Friday’s closing was near low, as data showing the shrinking eurozone economic growth outweighed promising earnings reports from some well-known companies.

Uncertainty about the pace of recovery of the global economy due to the continuous surge in Coronavirus Incidents in Asia, especially India and Japan, were similarly hurt.

The Pan-European STOXX 600 decreased by 0.31%. Germany’s DAX fell 0.12%, France’s CAC 40 fell 0.53%, while the UK’s FTSE 100 rose 0.12%. SMI in Switzerland decreased by 0.52%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey were all sluggish.

In the UK market, AstraZeneca made a 4.3% profit due to its strong performance. Pharmaceutical giants said they made $ 275 million in revenue from the non-profit Covid-19 vaccine in the first quarter.

Smurfit Kappa Group’s share price rose 4.2% due to strong earnings. Paper-based packaging solution providers reported that their underlying revenue growth in the first quarter was 6% compared to last year.

Hikma Pharmaceuticals, Hargreaves Lansdown, ICP, Imperial Brands, Rolls-Royce Holdings, M & G, Severn Trent, United Utilities, British American Tobacco, National Grid and B & M increased 2-3%.

Meanwhile, the Barclays Group fell 7%, despite reporting quarterly profits more than doubling. Ocado Group lost 4% and Flutter Entertainment lost 3.2%.

BNP Paribas reported better-than-expected profits, supported by lower reserves for pandemic-related non-performing loans and a recovery in equity trading.

Anglo American, Weir Group, Antofagasta, DCC, Abeva and Polymetal International were also significantly sluggish.

In France, STMicroElectronics, ArcelorMittal, Faurecia, Accor, Essilor, Air France-KLM, Pernod Ricard and LVMH fell sharply. BNP Paribas declined despite reporting higher-than-expected profits.

Kering, Saint-Gobain, Bouygues, Vinci and Carrefour ended with a sharp to moderate rise. Safran soared after maintaining its full-year forecast.

In the German market, BASF fell nearly 5%. Adidas, HeidelbergCement, SAP and Covestro also closed weakly.

The MTU Aero Engine recovered about 5% and Frezenius increased by about 2.5%. Lufthansa, Fresenius Medical Care and Bayer also performed well.

Eurostat’s new figures show that the eurozone’s GDP shrank by 0.6% in the first three months of the year due to slow vaccine deployment and continued blockades in the economic release.

Eurozone unemployment fell to 8.1% in March, down from 8.2% in February, above expectations of 8.3%.

Inflation in France rose to its highest level in 14 months in April due to rising energy and service prices, according to preliminary data from the Bureau of Statistics Insee. In another communiqué, the Bureau of Statistics showed that household consumption fell sharply in March as purchases of manufactured goods fell sharply.

As expected, consumer price inflation in April rose from 1.1% in March to 1.3%. This was the highest since February 2020 at 1.4%.

UK home prices rose 2.1% month-on-month in April, the largest monthly rise since February 2004, data released by the Nationwide Building Society show. Economists predicted a 0.5% increase after recording a 0.3% decrease in March.

On an annual basis, house price inflation rose from 5.7% in March to 7.1%. The rate was expected to slow to 5% in April.

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European markets fall due to weak eurozone GDP data

Source link European markets fall due to weak eurozone GDP data

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