We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Europe close: Stocks rise as bond yields ease but analysts cautious

Wed 06 July 2022 16:51 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

Market latest

FTSE 100 | FTSE 250 | Paris CAC 40 | Dow Jones | NASDAQ

7509.13 | Negative 6.62 (0.09%)

Prices delayed by at least 15 minutes

(Sharecast News) - European shares recouped some of the previous day's losses on Wednesday, although recession talk continued to make the rounds, prompting caution on the part of analysts.

"While stocks have avoided sustained falls after Tuesday's shaky session, the mood remains febrile," said IG chief market analyst Chris Beauchamp.

"The drop in the euro and weakness in yields shows that investors remain very nervous about the economic prospects of the global economy, and the opportunistic bargain hunting in stocks may not have much staying power."

The pan-European Stoxx 600 was up 1.66% at 407.34, with sentiment boosted by news that Norwegian oil and gas workers had called off their strike, easing worries of a supply shortage.

That news also pushed front-dated Brent crude oil down by 3.1% to $99.7 per barrel on the ICE. Natural gas futures however rose 9.4% to 174.5/MWh.

"It is increasingly hoped that lower oil prices, which would benefit both businesses as well as consumers, could lead to an adjustment of investment and spending patterns which would underpin a faltering economy," Interactive Investor head of markets Richard Hunter chipped-in.

Euro/dollar was again lower, shedding 0.90% to 1.0174 while longer-term sovereign bond yields in the euro area periphery were a tad lower.

In the background nevertheless, the release of a stronger-than-expected reading on US services sector activity for June from the ISM institute helped to steady investor sentiment.

Germany's DAX gained 1.56% to 12,594.52. Data showed German industrial orders grew surprisingly in May and were up by 0.1% on the month - together with positive revisions to prior months' figures - boosted entirely by orders from outside the Eurozone.

Nevertheless, according to Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics "they don't change the story of weakness in new orders midway through the second quarter."

In other economic news, eurozone retail sales volumes undershot economists' forecasts in May. According to Eurostat, in seasonally-adjusted terms, sales volumes grew at a month-on-month clip of 0.2% (Consensus: 0.5%).

Furthermore, April's outsized 1.3% drop in sales versus the previous month was revised down to -1.4%.

In equity news, Just Eat Takeaway.com surged 16% after Amazon agreed to take a 2% stake in Grubhub and said it will offer its Prime members access to the service for one year.

Shares of Faurecia fell 6% after Barclays double-downgraded its rating on the French car parts maker' stock to "underweight".

Ryanair shares slipped despite a UBS upgrade to 'buy'.

    Daily market update emails

    • FTSE 100 riser and faller updates
    • Breaking market news, plus the latest share research, tips and broker comments

    Register now for free market updates

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.