European Shares Mixed After Yesterday’s Rally On Fed Rate Hike
European stocks moved slightly mixed Thursday following previous day’s rally after the Federal Reserve’s first rate hike in three years, and amid progress in peace talks between Russia and Ukraine.
The investors were encouraged by the Fed’s comments about the strength of the economy, but also were concerned about the issues related the Russia- Ukraine conflict.
The Bank of England is also expected to raise its key rate for the third straight meeting on Thursday, as inflation is likely to accelerate more than anticipated due to higher energy prices.
The pan European Stoxx 600 went up 0.2 percent to 449.49.
In the major European markets, the U.K.’s FTSE 100 Index gained 0.2 percent at 7,305.67, and France’s CAC 40 index was up 0.3 percent at 6,608.82, while German DAX dropped 0.57 percent to 14,358.38,
Asian markets were mostly in positive territory on Thursday following China’s pledge for more stimulus and Wall Street’s broadly positive cues overnight.
On the data front, Europe passenger car sales declined again in February as the manufacturers continued to face supply chain disruptions, according to the European Automobile Manufacturers’ Association (ACEA).
In the corporate space, shares of Veolia Environnement gained around 2 percent. The French resource management firm reported Thursday higher results in fiscal 2021. Further, the company lifted dividend and said it sees higher results in fiscal 2022.
Shares of Vossloh AG, a German supplier of rail infrastructure products and services, gained more than 3 percent after reporting higher fiscal 2021 results. Looking ahead for fiscal 2022, Vossloh expects continued increase in sales and EBIT.
1&1 AG gained 0.8 percent following strong annual results.
Meanwhile, German conglomerate Thyssenkrupp fell more than 9 percent after Reuters reported quoting CEO that the war in Ukraine has forced the company to reassess its spending and potential spin-off of its steel division.
Both media company RTL Group and United Internet AG were trading slightly higher after reporting higher results in fiscal 2021, and positive sales growth view ahead.
In the UK, drug major AstraZeneca PLC shares were trading down around 1 percent after its Rare Disease unit Alexion agreed to pay $775 million to Chugai Pharmaceutical Co., Ltd., to settle all patent disputes related to Ultomiris (ravulizumab).
Among major miners, BHP Group was down 1 percent, while Rio Tinto was adding around 1 percent.
Cineworld Group was down 0.4 percent after reporting a loss in fiscal 2021 though narrower than last year.
Ocado Group fell around 8 percent. Ocado Retail Ltd., a joint venture between Ocado and Marks & Spencer Group plc, reported a 5.7 percent decline in first-quarter revenue, against a challenging comparative and a 4 percent fall in UK grocery market sales.
Marshalls Plc, a specialist landscape products group, gained 3.7 percent following higher results in fiscal 2021. The company also announced the appointment of Simon Bourne as Chief Operating Officer, with effect from April 1.
Trainline Plc grew more than 5 percent, and Deliveroo Plc gained more than 8 percent with its results and outlook.
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