European stock market gains capped by Ukraine war

European stock market gains capped by Ukraine war

Web Desk
April 20, 2022

European stock market gains capped by Ukraine war

European stocks rose Wednesday however profits had been capped as Russia continued its new offensive in jap Ukraine, dealers stated.

London equities rose 0.4 percent in noon deals after bumper in a single day gains on Wall Street.

Frankfurt received 0.9 percent and Paris brought 1.2 percent, aided by information of a go back to the boom in eurozone industrial output in February.

Oil rebounded slightly, having slumped the day prior to these on-demand worries.

– Huge uncertainty –

“There’s still a huge amount of uncertainty coming from all corners,” said OANDA analyst Craig Erlam, when asked about the impact of Ukraine.

Share price gains were “a continuation of the volatile but ultimately directionless markets we have become so accustomed to”, he cautioned.

Asia turned in a mixed showing, despite a Wall Street rally Tuesday on promising housing-starts data and solid earnings.

Europe equities and oil dropped Tuesday as Moscow launched its eastern offensive and after the International Monetary Fund slashed its global economic growth forecasts.

The IMF cut its 2022 outlook by 0.8 percentage points, largely over inflationary crises linked to the Ukraine war and the coronavirus pandemic.

– Shanghai slumps –

Shanghai’s main stocks index was Asia’s biggest faller, losing 1.4 percent as the People’s Bank of China (PBoC) kept key lending rates unchanged amid uncertainty over the impact of ongoing Chinese Covid restrictions.

Hong Kong — which plummeted on Tuesday over concerns about Beijing’s ongoing tech-sector crackdown — also ended down.

“PBoC policymakers realize the futility of cutting rates during a lockdown as policies incentivizing lending will have minimal a short-term positive impact on activity so long as mobility restrictions remain in place,” noted independent analyst Stephen Innes.

The sentiment turned dampened by means of news of slumping quarterly subscriptions for US streaming large Netflix.

This became the primary such drop for Netflix in a decade and hammered the streaming giant’s stocks in after-market buying and selling.

Analysts have said this may dent investor sentiment whilst New York reopens for business.

– Key figures around 1100 GMT –

London – FTSE 100: UP 0.4 percent at 7,629.81 points

Frankfurt – DAX: UP 0.9 percent at 14,280.45

Paris – CAC 40: UP 1.2 percent at 6,612.15

EURO STOXX 50: UP 1.5 percent at 3,889.25

Tokyo – Nikkei 225: UP 0.86 percent at 27,217.85 (close)

Shanghai – Composite: DOWN 1.4 percent at 3,151.05 (close)

Hong Kong – Hang Seng Index: DOWN 0.4 percent at 20,944.67 (close)

New York – Dow: UP 1.5 percent at 34,911.20 (close)