Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

European stocks mixed; recession concerns clash with China reopening

Stock Markets Dec 07, 2022 09:12
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
EUR/USD
+0.13%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.36%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XAU/USD
+0.32%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FCHI
-0.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DE40
-0.16%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SASY
+2.80%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Peter Nurse 

Investing.com - European stock markets traded mixed Wednesday, as investors digested the further easing of COVID restrictions in China as well as regional recessionary concerns.

At 03:55 ET (08:55 GMT), the DAX index in Germany traded 0.1% lower, CAC 40 in France traded down 0.1%, while the FTSE 100 in the U.K. climbed 0.1%.

German industrial production fell less than expected in October, dropping 0.1% on the month, instead of the forecast 0.6% decrease, in part dragged down by a decrease in production in energy-intensive industrial sectors.

While this release offered relatively good news, European investors are still having to cope with anemic growth and tightening monetary policy to cope with stubbornly high inflation. 

Eurozone GDP is due later in the session, and is expected to show an economy that barely grew in the third quarter, climbing 0.2% on the quarter, while employment numbers are also due.

Additionally, the European Central Bank is expected to increase interest rates again next week, even if they are now "very near" their neutral level, according to ECB policymaker Constantinos Herodotou on Tuesday.

Analysts at Goldman Sachs see European stocks having a difficult start to 2023, after the strong rally to end this year. 

“We expect 2023 to prove tougher after the resilience in earnings this year,” said Goldman analysts, citing margin pressure due to higher costs that will be harder to pass on in a recession.

Chinese authorities announced earlier Wednesday that a range of COVID restrictions had been eased, including allowing some people to quarantine at home and ending test requirements to enter most public venues.

These moves follow civil unrest over the strict nature of the country’s mobility curbs to stem another outbreak of infections.

GSK (LON:GSK) stock soared 11% and Sanofi (EPA:SASY) (NASDAQ:SNY) stock rose 7.4% after the drugmakers saw tens of thousands of lawsuits involving the heartburn medicine Zantac dismissed in a U.S. court.

Crude oil prices weakened Wednesday on worries over the global growth outlook, overshadowing the news of fewer new COVID-19 infections in China and the easing of a range of restrictions.

The American Petroleum Institute, an industry body, estimated a drawdown in U.S. crude stockpiles of around 6.4 million barrels last week, according to data released Tuesday, suggesting demand remained strong in the world’s largest consumer. 

The official numbers from the Energy Information Administration are due later Wednesday.

Trading has been volatile as the ramifications of the EU import ban and Group of Seven's $60-a-barrel price cap on seaborne Russian oil remain unclear.

By 03:55 ET, U.S. crude futures traded 0.5% lower at $73.88 a barrel, while the Brent contract traded 0.4% lower at $79.03, falling below $80 for the second time in 2022 during the previous trading session. 

Additionally, gold futures rose 0.3% to $1,787.85/oz, while EUR/USD traded 0.1% higher at 1.0476.

European stocks mixed; recession concerns clash with China reopening
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email