PARIS / LONDON (dpa-AFX) – The European stock markets recovered somewhat on Tuesday after the downturn of the past few days. However, the profits remained manageable. The EuroStoxx 50 (EURO STOXX 50) climbed 0.96 percent to 3545.80 points around midday. The support in the form of the high from the summer of 2020 at 3451 points initially stopped the price slide.
The French CAC 40 increased by 1.39 percent to 6069.53 points. The British FTSE 100, on the other hand, fell slightly by 0.24 percent to 6942.72 points.
The extremely oversold market situation and slight signs of easing in the Ukraine conflict then gave the markets a boost after initial losses. The Russian military announced a new ceasefire in Ukraine on Tuesday. In addition, the indications for Wall Street point to stabilized prices.
But the situation remains fragile. The continued great uncertainty kept market participants in reserve, as the manageable profits show. “The spectrum of conceivable scenarios ranges from rapid de-escalation to a permanently deadlocked situation to an intensification of the conflict,” said investment expert Olivier de Berranger from the fund company LFDE, outlining the possible development.
The embargo on Russian energy imports is now hanging over the stock markets like the sword of Damocles. The German chemical industry warned of the costs. It is expected “that an import embargo would lead to noticeable burdens on society as a whole due to rising costs in many areas of life,” said the Chemical Industry Association (VCI).
Some of the biggest losers from the recent slide rallied. Utilities and bank stocks were ahead.
Danone (Danone) stabilized after initial losses. The stock rose 0.5 percent after falling to the area of the 2020 corona low in the past few days. The food group expects a weaker operating profit margin in the current year. For the years 2023 and 2024, the increase in sales should be the same as this year, but the operating profit adjusted for special effects should increase more strongly than the proceeds.
Meanwhile, the French telecom group Orange wants to join forces with its Spanish competitor Masmovil in the hotly contested Spanish market. The two companies are in talks to merge their businesses in the southern European country, Orange said in Paris on Tuesday. The deal is expected to be signed by the summer and completed by the second quarter of 2023. Orange gained 0.2 percent, Telefonica increased by 0.8 percent. Investors are counting on a slightly less fierce price war in the Spanish market.
Among the smaller stocks, stocks from the renewable energy sector again posted gains. They have been popular with investors for days thanks to the prospect that the Ukraine war will further accelerate the energy transition in Europe. Vestas (Vestas Wind Systems AS) and Siemens Gamesa (Siemens Gamesa Renewable Energy SA) advanced 4.5 and 5.4 percent, respectively.
There was also a report by the Bloomberg news agency. The latter wrote, citing informed circles, that the US financial investor KKR was considering buying the French company Albioma, which has its strengths in the solar and biomass sectors. The stock rose by more than ten percent. The extremely volatile hydrogen values were also in demand, some of which climbed in double-digit percentages./mf/mis