PARIS / LONDON (dpa-AFX) – The European bad guys increased on Wednesday after positive economic signals from China. After slight losses on Tuesday, there was a moderate countermovement. The Eurozone leading index EuroStoxx 50 (EURO STOXX 50) rose by 0.7 percent to 4267.90 points at midday. France’s CAC 40 was up 0.64 percent to 7313.75 points, while Britain’s FTSE 100 was up 0.76 percent to 7935.77 points.
Good guidance from Asia and rising US futures supported. Nevertheless, there was a certain reluctance. In the afternoon, the ISM index for the manufacturing sector in the USA is another important economic indicator that also signals for the USmonetary policy should deliver. “The issue of inflation is gaining weight again in Europe and fears of an economic slowdown are also growing in the USA,” commented market expert Andreas Lipkow.
Among the individual sectors, the surprisingly strong economic data from China left its mark. The country’s official purchasing managers’ index not only beat most analysts’ expectations month-on-month in February, it also climbed to its highest level in more than a decade. “The purchasing manager indices published today are expanding again after the standstill due to the Corona compulsory break,” emphasized capital market strategist Jürgen Molnar from broker RoboMarktes. Commodity stocks benefited from this given the needs of the Chinese economy. With the Weir Group, whose shares rose by around eight percent, a provider of mining technology had also presented good figures.
But auto stocks also posted gains due to the importance of the Chinese market. Aston Martin shares were in demand here after the luxury vehicle manufacturer managed to return to profitability in the fourth quarter.
Insurers also posted gains. The Swiss group Swiss Life earned significantly more in the 2022 financial year and pays a higher dividend. The stock climbed 3.5 percent. With Kühne+Nagel, another Swiss company also impressed. The transport company had suffered a decline in sales and profits in the fourth quarter. The new medium-term goals are just bursting with confidence. In addition, the dividend increase is generous. Shares rose 7.3 percent.
Among the manufacturers of household products, Reckitt Benckiser stood out with a premium of almost two percent. The British consumer goods group surprisingly increased its sales last year despite the reluctance of customers to buy. Noticeable price increases more than made up for the decline in sales. At the end of the sector field, on the other hand, were the interest-sensitive utilities and real estate values, which testifies to the ongoing interest rate concerns./mf/mis