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European Markets Jump to Start 2022: Autos, Airplanes, Travel Lead the Way

Stock MarketsJan 03, 2022 08:57AM ET
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© Reuters.

by Daniel Shvartsman

Investing.com - European markets started 2022 continuing the momentum from a strong 2021, as indices jumped in Monday trading.

At 1450 CET (1350 GMT), the DAX (+1.1%) , the Euro Stoxx 50 (.8%), the CAC 40 (1.1%), the IBEX 35 (.8%), and the FTSE MIB (1.3%) all traded higher. The U.K. markets and thus the FTSE 100 are closed for trading today in observance of New Year's Day.

Leading sectors included the automobile sector, with Porsche Automobil Holding SE (DE:PSHG_p) (5.4%), BMW (DE:BMWG) (2.8%), Renault SA (PA:RENA) (3%), Volkswagen (DE:VOWG_p) (2.4%), Stellantis NV (PA:STLA) (3.4%), and auto parts supplier Michelin (PA:MICP) (2.7%) all driving higher to start the day. This comes amid Tesla (NASDAQ:TSLA) and other electric vehicle makers reporting their deliveries for Q4, as well as South Korean automaker Hyundai Motor (KS:005380) forecasting a 12.1% increase in auto sales in 2022.

The airplane industry jumped as well, with Safran (PA:SAF) (2%) announcing plans to hire up to 12,000 people in anticipation of air traffic recovering in 2022, with their CEO saying, "The worst is behind us." Airbus Group SE (PA:AIR) is up 3% as well on the news. This may also be knocking on to the travel sector more generally, with International Consolidated Airlines Group S.A. (MC:ICAG) (5.5%), Aena (MC:AENA) (2%), Melia Hotels (MC:MEL) (3.6%), Air France KLM (PA:AIRF) (5.3%), and Deutsche Lufthansa AG (DE:LHAG) (7.4%) all among winners in early trading. Lufthansa got an analyst upgrade on the day, which is helping send it higher.

One more company in the news is Delivery Hero AG (DE:DHER), which announced last Friday it would be increasing its stake from 36% to 80% in Spanish-based delivery company Glovo. The German-based company, which just a couple weeks ago announced it would be shuttering its German efforts for the second time, is up .8% on the day. Rival Just Eat Takeaway (AS:TKWY) is trading up 2.8%.

CNH Industrial NV (MI:CNHI) is trading expectedly lower, down 11.5% after completing the spin-off of Iveco Group (MI:IVG) (though adjusted for the spin, CNH is down .2%). Iveco Group for its part is down 11% in the truck powertrain maker's independent market debut.

European may be getting a tailwind from solid PMI (purchasing managers index) reports this morning, with the Eurozone report meeting expectations and showing a solid expansion with a 58 reading (50 and up is expansionary), and most individual countries' reports coming in at or ahead of expectations; Germany came in slightly below expectations with a 57.4 reading vs. 57.9 expectations.

Brent Oil Futures have pulled back from positive figures earlier in the day, trading down .5%, while Crude Oil WTI Futures are down .8%. There have been questions asked anew over how much the Omicron variant of Covid-19 might weigh on demand and cause a glut in supply, though Libya's production has also been restricted due to a broken pipeline.

Cryptocurrencies have had a muted start to the year, with Bitcoin slightly up for the year but only up .2% in the last 24 hours, and Ethereum up 2.1%.

The EUR/USD is down .1% to 1.1355.

(Article will be updated throughout the day).

European Markets Jump to Start 2022: Autos, Airplanes, Travel Lead the Way
 

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Comments (6)
Steffen vdm
Steffen vdm Jan 03, 2022 9:38AM ET
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more and more flights cancelled: airplane industry jumps🤪
Gabriel Mikky
Gabriel Mikky Jan 03, 2022 9:10AM ET
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The profit margin I guess but is way low.
Gabriel Mikky
Gabriel Mikky Jan 03, 2022 9:09AM ET
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Waiting For the Market to Open Fully. I cannot anticipate but the trend looks quite good for today
Arun Zope
Arun Zope Jan 03, 2022 8:19AM ET
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Market is taking U turn. expecting good demands. No threat of Covid as vaccine is developed..
Rahmatullah Dilsoz
Rahmatullah Dilsoz Jan 03, 2022 7:56AM ET
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nice
Matt Kay
Matt Kay Jan 03, 2022 6:13AM ET
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Stonks jump for no reason or news. Hope bubble pops tomorrow.
 
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