Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

European shares rise on aero, luxury stocks boost

Stock Markets Jul 12, 2022 12:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 25, 2022. REUTERS/Staff
 
FCHI
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ES35
+0.95%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EDF
-0.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BLK
+1.52%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX
+0.24%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Susan Mathew and Devik Jain

(Reuters) -European shares rose on Tuesday led by beaten-down aerospace, luxury and travel stocks, although worries about an energy supply crunch and a potential global recession capped gains.

The pan-European STOXX 600 index ended 0.5% higher after opening lower and breaking a three-day winning streak in the previous session.

LVMH and L'Oreal rose 1.1% and 2.8%, respectively, while planemaker Airbus jumped 3.9%, helping the France's CAC 40 climb 0.8%.

Travel and leisure stocks added 1.6% as crude prices slumped below $100 a barrel on growing concerns about a global economic slowdown. [O/R]

Meanwhile, worries mount that a maintenance shutdown of the Nord Stream 1 pipeline from Russia to Germany could get extended because of the Russia-Ukraine war, affecting the region's energy supplies.

Investors worry that Russian President Vladimir Putin could weaponize gas in retaliation to Western sanctions over its invasion of Ukraine, said Andrea Cicione, head of strategy at TS Lombard.

"This could get worse and people kind of expect it, but it's not fully in the price yet," he said.

Indeed, data this morning showed German investor sentiment plunged below levels at the outset of the coronavirus pandemic due to major energy concerns, supply bottlenecks and anticipated monetary tightening by the European Central Bank.

The ECB, which is lagging behind the U.S. Federal Reserve and other major central banks in rate-hike cycle, is expected to raise interest rate by at least 25 basis points this month.

However, recession fears have prompted money markets to scale back their bets on how much the ECB will raise rates this year and next.

The STOXX 600 index has fallen in five out of the last six months on recession fears. Asset manager BlackRock (NYSE:BLK) said on Monday it had reduced its exposure to developed market equities as it expects volatility amid central banks' attempts to temper inflation.

In the United States, June inflation data is expected to come in hot on Wednesday, cementing bets on another 75 bps interest rate hike later this month.

Among individual stocks, power giant EDF (EPA:EDF) jumped 6%, after sources said the French government was poised to pay more than 8 billion euros ($8.05 billion) to bring the company back under full state control.

Italy's Saipem plummeted 48.6% after the energy services group said investors had subscribed for only around 70% of the new shares it was issuing in a 2 billion euro cash call.

Spanish blue chip index IBEX 35 closed 0.6% lower dragged by banks, hit by government plans to impose extraordinary taxes on financial institutions and power companies to help Spaniards cope with soaring inflation. [nL8N2YT2ZD

European shares rise on aero, luxury stocks boost
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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