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08.05.2022 04:34 AM
The main European indicators showed a fall

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The main European indicators showed a fall at the close of trading on Thursday. The composite European index STOXX Europe 600 fell by 0.7%. All other indices of the region also showed a decrease to 1%: the German DAX by 0.49%, the French CAC 40 - by 0.43%. The Italian FTSE MIB lost 0.6% and the Spanish IBEX 35 lost 0.77%. The British FTSE 100 index showed a slight increase (by 0.13%).

Pessimistic moods of the market participants are caused, first of all, by the results of the US Federal Reserve meeting. As it became known, the central bank decided to raise the interest rate to 0.75-1%. Thus, as predicted by most analysts, the rate was increased immediately by 50 basis points. The Fed also announced a planned reduction in the balance of financial assets from June 1 this year.After such reports, American indicators fell much more than European ones - by 3-4.6%. Investors are concerned about the potential impact of monetary tightening on the economic situation. Globally, markets are also affected by geopolitical tensions.

The growth of the British indicator is due to the strong weakening of the national currency of the country. The pound lost more than 2% against the US dollar.

The Bank of England raised its interest rate to 1% from 0.75% for the fourth time in a year. Now it has reached its highest level since 2009. However, the markets were ready for this, as experts predicted an increase in the interest rate in advance. The central bank also increased the price growth forecast for 2022 to 10.25% (from 5.75%) and also for 2023 to 3.5% (from 2.5%). At the same time, the forecast for an increase in GDP for 2022 remained unchanged - an increase of 3.75% is expected, however, estimates of GDP growth for the next year have changed - a decrease in the indicator by 0.25% is expected (previously it was predicted to grow by 1.25%).

According to the latest reports, the volume of orders of industrial enterprises in Germany decreased by 4.7% in March compared to the level at which it was a month earlier.

The volume of industrial production in France decreased by 0.5% in March compared to the previous month. However, the decline was even greater in February - 1.2%.

Despite positive data from Bayerische Motoren Werke AG (BMW) corporate reporting, namely a fourfold increase in quarterly profit, its stock quotes fell by 1.8%.

Shell gained 3.1% as a result of Shell's 26% increase in net quarterly profit even after losing $3.9 billion due to the suspension of operations in the Russian market.

Credit Agricole reported a 47% decrease in net profit, as a result of which its shares lost 4%. At the same time, another company from the same field, UniCredit, managed to make a profit of 1.16 billion euros, compared with last year's mark of 829 million euros. Due to this, the value of the company's securities increased by 2.1%.

Leonardo S.p.A. stock quotes declined by 0.85%, despite the fact that the company managed to reach a profit level and increase revenues, as well as confirm its forecast for revenues for 2022 in the amount of 14.5-15 billion euros.

As a result of the growth of Airbus SE's net quarterly profit, its capitalization tripled by 6.3%. The company has become one of the leaders among the components of the STOXX Europe 600 indicator.

Some of the other companies that make up this indicator showed a decrease in share prices: Verbund AG by 12.8%, Just Eat Takeaway by 11.7%, and Zalando by 10.6%.

Anastasia Kravtsova,
Analytical expert of InstaForex
© 2007-2025
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