European Shares Mixed In Choppy Trade

European Shares Mixed In Choppy Trade

July 26, 2022

European stocks were mostly higher in choppy trade on Tuesday despite reports of a spending slowdown at tech giant Apple and a mixed earnings update from IBM.

While stronger-than-expected U.K. jobs data heightened fears of more interest-rate hikes, Eurostat data showed that the region’s inflation accelerated as estimated in June to set a fresh record high, driven by higher energy and food prices.

Headline consumer price inflation surged to 8.6 percent from 8.1 percent in May. In the U.K., the ILO unemployment rate came in at 3.8 percent in three months to May, unchanged from three months to April but down by 0.1 percentage points on the quarter. The rate was forecast to rise to 3.9 percent.

The euro hit a two-week high and bonds slid across Europe after Reuters reported citing sources that ECB policymakers will discuss whether to raise rates by 25 or 50 points at their meeting on Thursday to tame record-high inflation.

The pan European Stoxx 600 climbed 0.9 percent to 417.37, the German DAX rose 0.6 percent and the U.K.’s FTSE 100 was marginally higher, while France’s CAC 40 index slipped 0.4 percent.

Swiss drug maker Novartis gained 1 percent after saying it no longer expects a decline in earning at its Sandoz unit.

Norwegian telecommunications provider Telenor ASA slumped 4.3 percent as it reported a second quarter net loss attributable to equity holders of 1.11 billion Norwegian Kroner compared to profit of 2.19 billion Kroner last year.

Miners Anglo American, Antofagasta and Glencore all fell over 1 percent in London as rising COVID-19 cases in China raised fears of a further slowdown in economic growth.

Events and academic-publishing group Informa jumped 4 percent after backing its full-year guidance.

Kier Group rallied 2.7 percent. The construction, services and property group said it expects full-year results to be in-line with the Board’s expectations, reflecting a strong operational performance.

Alstom shares plunged 6 percent in Paris. The train maker warned of challenges from inflation and the shortage in electronic components after reporting an 8 percent increase in first-quarter sales.

EDF shares soared 15 percent after the French government offered 12 euros per share to take full control of the company in a 9.7 billion-euros (US$9.85 billion) buyout offer to nationalize Europe’s biggest nuclear power operator.

The offer price represented a premium of 53 percent, to the closing price of EDF shares on July 5, the day before Prime Minister Elisabeth Borne announced the nationalization.

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