European Stocks Edge Higher, Is It Time to Invest?
Following Tuesday’s decline on rising recession worries, European stock markets significantly recovered on Wednesday as investors sought out deals.
By 04:20 AM ET (0820 GMT), the DAX in Germany was up 1.5%. The CAC 40 in France was up 1.7%. Moreover, the FTSE 100 in the UK was up 1.8%. enhancing the mood. New orders to German manufacturers increased for the first time in four months. It ended a losing trend that had started soon after Russia’s invasion of Ukraine. This news broke on Wednesday. Orders increased by 0.1 percent from April, according to the statistics office Destatis, which also revised April’s results to reflect a loss of only 1.8 percent rather than the earlier estimate of 2.7 percent.
The figure, a crucial leading indicator for the Eurozone economy, assisted in easing some of the gloom brought on by the publication on Tuesday of the S&P Global Composite Purchasing Managers Index for the single currency bloc, which recorded its lowest level in 16 months.
Will The Uptrend Continue?
Investors will now be assessing the effect of the region’s high inflation on consumers as they await the publication of the Eurozone’s retail sales data for May later in the afternoon. Following the release of new survey data that indicated the Eurozone economy was moving closer to recession. Hence, the region’s major market indexes suffered significant losses on Tuesday.
Talk of gas rationing in Europe, political upheaval in Britain, and a recent spike in COVID-19 cases that led to new restrictions in Shanghai all contributed to the unfavourable mood. On the business front, Just Eat Takeaway’s (AS: TKWY) share price increased by more than 16%. This came following the announcement of a new relationship with Amazon (NASDAQ: AMZN). Now, the digital giant would acquire a stake in the online delivery service’s Grubhub division.
The shares of Trainline (LON: TRNT) increased by more than 20% after a dramatic uptick in tourism in the spring prompted the business to increase its outlook. Trainline is a specialist in an online ticket sales company for train travel throughout Europe.