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PARIS/LONDON (dpa-AFX) – Europe’s stock markets started the weekend with moderate gains. The slump in the ifo business climate index in March ultimately prevented larger price jumps. The EuroStoxx 50 (EURO STOXX 50), the leading index for the euro zone, closed 0.11 percent higher at 3867.73 points. On a weekly basis, there was a minus of almost one percent. The rise in interest rates on the bond markets may not have pleased investors on the stock exchanges either. The 10-year Bund yield rose to its highest level in almost four years on Friday.
The combination of weak growth and simultaneous increases in inflation and interest rates is thus continuing to unsettle the markets. In this environment, the French CAC 40 went down 0.03 percent at 6553.68 points. The British FTSE 100 gained 0.21 percent to 7483.35 points.
After the world stock markets got over the initial shock of Russia’s attack on Ukraine, they are now “in a kind of standstill,” said analyst Craig Erlam of trading house Oanda. They could remain in this state until fundamentally new developments occur in the course of the war.
There were clear warning signals from the economy. The Ifo business climate index for March underscored the risks by posting the sharpest decline since March 2020. “The message of the most important German economic barometer is clear: The German economy is very likely to slip into recession,” said chief economist Thomas Gitzel from VP Bank. British retailers also disappointed.
Banks continued the weak development from the previous day. Concerns about a recession with the corresponding impact on credit demand weighed on the sector. The oil and gas sector rose after oil prices rebounded later in the day. The heavyweights TotalEnergies, Eni, Shell (Shell (ex Royal Dutch Shell)) and BP rose in price by up to two percent.
Real estate stocks were also in demand, with the European sector rising by 1.7 percent. The investment house Jefferies had upgraded the shares of the real estate and investment company British Land to “Hold”. The value gained almost three percent./bek/jha/