Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

European stocks edge higher; consumer confidence starting to return

Published Feb 24, 2023 16:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
EUR/USD
+0.02%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
-0.76%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XAU/USD
+0.02%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FCHI
+0.08%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DE40
+0.25%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BASFN
-1.02%
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 higher Friday on signs that confidence surrounding the region’s economy is slowly recovering, ahead of the release of the Federal Reserve's preferred inflation measure. 

At 03:25 ET (08:25 GMT), the DAX index in Germany traded 0.1% higher, while the CAC 40 in France climbed 0.3% and the FTSE 100 in the U.K. rose 0.3%.

Data released earlier this session showed that U.K. consumer confidence rebounded in February, with the GfK’s consumer confidence index climbing seven points to minus 38. While this is still close to the historic lows triggered by the cost-of-living crisis, it still represented a 10-month high. 

The forward-looking German GfK consumer climate index also improved to -30.5 in March, from -33.8 the previous month, while in France the February consumer confidence figure came in at 82 points, down from a revised figure of 83 for January but that had previously been given as 80. 

German growth data was less encouraging, as the Eurozone’s largest economy contracted 0.4% in the final quarter of last year, which resulted in just 0.3% annual growth.

However, these numbers are historic, and business activity numbers in 2023 have been much more optimistic.

“The outlook for the world is slightly brighter at the beginning of 2023 than what we thought it would be just two or three months ago,” OECD Secretary-General Mathias Cormann said Friday in an interview on CNBC, adding that inflation challenges remain.

The extent of those challenges may be made plain in the U.S., the world’s largest economy, later in the session with the release of the core personal consumption expenditures price index for January, the inflation gauge the U.S. central bank studies the most closely.

The index is expected to be up 4.3% on a year earlier, compared with 4.4% the previous month, suggesting inflation will be tricky to tame.

In the corporate sector, BASF (ETR:BASFN) stock fell 3.8% after Europe’s biggest chemical firm announced a 12% drop in earnings in 2022. It also said it would be ending a share buyback program ahead of time and planned to cut 2,600 positions, about 2% of its global workforce, to try and cut costs.

IAG (LON:ICAG) stock fell 2.7% despite the owner of British Airways returning to profit in 2022, adding that profits would grow again this year. It also agreed on Thursday to pay €400 million (€1 = £1.0587) to Spain's Globalia for the remaining 80% of airline Air Europa it did not already own.

Oil prices rose Friday as the prospect of reduced supply from Russia into the global market offset rising U.S. inventories.

Moscow plans to cut up to 25% of oil exports from its western ports in March, according to a Reuters report, which is more than the 500,000 barrel per day supply cut announced earlier.

This news has overshadowed the announcement of another increase in U.S. oil stocks, with data from the Energy Information Administration showing inventories grew for a ninth consecutive week to their highest level since May 2021.

By 03:25 ET, U.S. crude futures traded 1.3% higher at $76.39 a barrel, while the Brent contract rose 1.3% to $83.29. Both contracts were trading down less than 0.5% each for the week, having clawed back earlier heavy losses.

Additionally, gold futures rose 0.2% to $1,830.10/oz, while EUR/USD dropped 0.1% to 1.0589.

European stocks edge higher; consumer confidence starting to return
 

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