European stocks fail to hold on to early gains, end on mixed note

(RTTNews) – European stocks failed to hold on to early gains and ended on a mixed note on Friday as investors weighed the likely impact of interest rate hikes announced by central banks, including the Reserve federal government and the Bank of England, on global economic growth.

The Chinese cabinet’s pledge to outline necessary measures to bolster support for the struggling economy, and US President Joe Biden’s comments that the US recession is not inevitable and that the country was “in a stronger position stronger than any nation in the world to overcome inflation,” the sentiment rose at the start of the session.

However, with the mood turning cautious after mid-afternoon, stocks began to shed gains and ultimately ended on a mixed note.

Following the Federal Reserve’s announcement of a 75 basis point interest rate hike on Wednesday, the Bank of England and the Swiss National Bank raised their key rates today, in a bid to combat the surge in inflation.

Taiwan’s central bank also raised its benchmark rate by 0.125 percentage points on Thursday, raising rates for the second straight time.

The pan-European Stoxx 600 index edged up 0.09%. Britain’s FTSE 100 ended down 0.41%, Germany’s DAX gained 0.67%, France’s CAC 40 ended down 0.06% and Switzerland’s SMI fell 0.23%.

The DAX and CAC 40 both lost almost 5% during the week, while the FTSE 100 lost around 4.1% and the pan-European Stoxx 600 lost 4.6% during the week.

Among other European markets, Belgium, the Czech Republic, Denmark, Finland, Greece, Ireland, Norway, Spain and Turkey finished higher.

The Netherlands, Poland, Portugal, Russia and Sweden closed lower, while Austria finished flat.

In the UK market, BP lost more than 6%. Rio Tinto, Shell, Harbor Energy, Antofagasta, Anglo American and Ashtead Group 3.8 to 6.2%. Fresenillo, Standard Chartered and the London Stock Exchange also closed sharply lower.

Sage Group and Ocado Group both gained around 5.6%. ICP, Auto Trader Group, JD Sports Fashion, Avast, Pershing Square Holdings, Coca-Cola HBC, Aveva Group, IAG and Pearson gained 2.5-4%.

On the French market, WorldLine, Essilor, Danone, Michelin, Atos, Safran, Société Générale, Cap Gemini, Renault, Airbus Group and Air France-KLM gained 1 to 4.3%.

Carrefour, Air Liquide, Kering, ArcelorMittal and Schneider Electric lost 1.3 to 2%.

In Germany, Deutsche Wohnen rose more than 7%. Vonovia, Zalando, E.ON, Adidas, Deutsche Post and Symrise gain 2 to 3.5%. Deutsche Telekom, SAP, Bayer, HelloFresh and Infineon Technologies also posted strong gains.

Merck was down more than 3%. Brenntag, Porsche Automobil and Covestro lose 1 to 2%.

In today’s European economic news, Eurozone inflation accelerated to a new record high in May, due to soaring energy prices, according to final data from Eurostat. Inflation rose to 8.1% in May, in line with the flash estimate, from 7.4% in April. A year earlier, the rate was 2%.

Core inflation, which excludes energy, food, alcohol and tobacco, rose to 3.8% from 3.5% the previous month. The base rate is also in line with the estimate released on May 31.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

About Wanda Dufresne

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