PARIS/LONDON (dpa-AFX) – Europe’s most important stock markets closed with slight discounts on Thursday. The higher-than-expected increase in inflation in the USA, which had caused significant losses in the afternoon, was ultimately digested quite well by investors. On the stock exchanges, an increase in the key interest rate in the United States in March is already considered certain, as is the fact that several further interest rate hikes will follow this year. However, there is also confidence that the US Federal Reserve will not push ahead so aggressively that the recovery of the US economy is threatened.
Higher interest rates can make it more expensive for companies to refinance and have a negative impact on profits. Equities also become less attractive when bond markets rise in yields.
The EuroStoxx 50 (EURO STOXX 50) ultimately fell by 0.17 percent to 4197.07 points. The French CAC 40 lost 0.41 percent to 7101.55 points. The British FTSE 100, which is peppered with numerous mining stocks, was up 0.38 percent to 7672.40 points. Commodity stocks were among the strongest sectors in Europe.
Quarterly reports in particular caused strong price swings in individual stocks. In the banking sector, for example, the big bank Societe Generale (Socit Gnrale (Societe Generale)), which announced record profits, recorded a plus of 3.2 percent. Credit Agricole (Crdit Agricole), which also posted better-than-expected earnings, rose 1.4 percent.
Credit Suisse (Credit Suisse (CS)) shares, on the other hand, fell 6.6 percent. In the fourth quarter, the Swiss bank slipped deep into the red due to a billion-dollar impairment.
At Unilever, whose shares fell 1.3 percent, it was the food company’s reduced margin outlook for 2022 that displeased investors. L’Oreal (LOral) fell 2.0 percent. On the surface, the figures of the cosmetics group made a good impression, but behind the handsome facade it did not look so good. According to Molly Wylenzek from the analysis firm Jefferies, the margins in the past year were disappointing.
The papers of the specialist publisher and database provider RELX also fell by 1.9 percent after the operating result failed to meet analysts’ expectations.
The pharmaceutical company AstraZeneca, on the other hand, did well with good business and the takeover of Alexion last year. The company is aiming for significant growth in 2022. The stock gained 3.4 percent./ck/he