Europe is in the green, but analysts warn of a “short-term pullback”. Lufthansa Airlines 6%
Europe started the session mostly in the green, at a time when investors were assessing the European earnings season, and as the market looks to London, where the Bank of England will announce a possible 50 basis point interest rate hike, the highest level since 1995.
Stoxx 600 added 0.36% to 439.85 points. Among the 20 sectors that make up the index, retail, travel and entertainment lead the gains, benefiting from Lufthansa’s forecast, while mining and personal care take losses. The European core index is struggling to maintain momentum, after ending July with its biggest monthly gain since November 2020.
Among the main market moves, Lufthansa shares add up to 6.67%, after the airline expected continued profit growth in the coming months, at a time when booking gains confirm the strong start of the summer season.
On the other hand, Rolls-Royce shares declined by 5.1% after the car brand recorded losses in the first half of 1.61 billion pounds (1.92 billion euros at the current exchange rate), compared to a profit of 394 million pounds (470.79 million euros) achieved. last year.
In the remaining European markets, Madrid and Frankfurt each advance 0.84%, Paris 0.51% and Milan aggregate 0.61%. Here Lisbon rises by 0.49%. Amsterdam is the only major market trading in the red (-0.22), while London is trading on the waterline awaiting the BoE’s decision.
“Despite this uptick, the short-term outlook remains very negative, due to the continuing risks of war in Ukraine and the Italian elections,” Eliot Hentof, head of “research” at Street Global Advisor, warned in comments to Bloomberg. .
Bernstein even points out, in a “research” note cited by Bloomberg, that Europe is likely to enter a “mild recession,” with the main challenges being a weak euro, the energy crisis and political uncertainty in Italy, “in short – the fall of the range in the market” order. is expected.
“Wannabe internet buff. Future teen idol. Hardcore zombie guru. Gamer. Avid creator. Entrepreneur. Bacon ninja.”