Higher European stocks; German factory orders collapse


By Peter Nurse

Investing.com – European stock markets rose on Monday, starting the new week on a positive note despite weak German industrial orders in hopes that the omicron variant of Covid-19 may be less dangerous than previous strains of the disease .

At 3:50 am ET (8:50 am GMT), the German DAX was trading up 0.8%, the CAC 40 in France rose 0.5% and the UK FTSE 100 climbed 0.7%.

Actions around the world have been disrupted by the emergence of the new variant of Covid and uncertainty over its economic impact as countries introduce new restrictions to combat its spread.

The International Monetary Fund warned on Friday that it would likely lower its estimates of global economic growth due to the new variant.

In Europe, the week has started positively in hopes that the new variant may cause only a mild reaction, even though it is more contagious than the other versions. But any gain is likely to be tempered with caution as scientists attempt to find out whether this is the case or what level of protection is provided by existing Covid-19 vaccines.

Economic data will also be likely to slow down, German factory orders fell 6.9% in October, collapsing after the previous month’s 1.3% gain, putting the eurozone’s largest economy on a weak basis in the closing months of the year.

“Today’s industrial order data is a cold shower for German industry,” said analyst Cartsen Brzeski at ING, “perhaps a reflection of persistent supply chain and corporate friction. who simply delay new orders or, worse, cancel orders knowing the delivery times are long anyway. “

In business news, Anheuser Busch Inbev (BR: ABI) share rose 1% after the world’s largest brewer set a goal, under new CEO Michel Doukeris, to generate annual growth in core earnings of between 4% and 8% over the medium term.

Saint Gobain (PA: SGOB) stock rose 1.3% after the French building materials company announced the acquisition of GCP Applied Technologies (NYSE: GCP) in a deal that values the US-based company at around $ 2.3 billion.

Elsewhere, shares of Rio Tinto (NYSE: RIO) fell 1.3% after JPMorgan lowered its target price, shares of Deutsche Bank (DE: DBKGn) rose 3.3% after JPMorgan put the German bank in “overweight”, and Just Eat Takeaway (AS: TKWY) the stock fell 4.3% after Bernstein downgraded the stock to “market performance”.

Crude prices soared on Monday after Saudi Arabia raised the price of its oil to the United States and Asia by up to 80 cents from the previous month, an indication of its confidence in the strength demand in both regions.

At 3:50 a.m. ET, U.S. crude futures were trading up 2.3% to $ 67.77 per barrel, while the Brent contract was up 2% to $ 71.29. Both benchmarks fell last week for their sixth consecutive week for the first time since November 2018, over concerns that the new variant of the coronavirus could affect fuel demand.

Additionally, gold futures fell 0.1% to $ 1,781.95 / oz, while EUR / USD traded down 0.2% to 1.1290.

Related Articles

Higher European stocks; German factory orders collapse

Indian stocks fall as markets close; Nifty 50 down 1.65%

Renault to cut fewer jobs than initially planned by 2024


Comments are closed.