European stock indexes closed in positive territory on Wednesday, with the STOXX Europe 600 gaining 0.84% and recovering from earlier losses. The DAX gained 1.47%, the CAC 40 increased by 1.38%, the FTSE 100 added 0.37%, the FTSE MIB rose by 1.03%, and the IBEX 35 edged up by 0.87%.
Since the beginning of 2022, investors were wary of rising inflation and policy measures by central banks. The war between Russia and Ukraine has added uncertainty over further economic growth by pushing up energy prices and disrupting supply chains.
The ECB is considering increasing interest rates in July, with further monetary tightening possible later this year.
Investors are also focused on the presidential election in France, where debates between the incumbent president Macron and his opponent Marin Le Pen are scheduled to take place this week, with the second round to take place on Sunday.
According to the latest data, car sales in the EU have decreased by 20.5% year-over-year. Sales have fallen by 30.2% in Spain and 29.7% in Italy.
As a result, shares of Volkswagen lost 0.7%. Stellantis and Renault gained 0.5% and 0.4% respectively.
Several companies have published their earnings reports for the first quarter of 2022.
Shares of Danone has increased by 5.8% after the company reported sales increased by 10.2% to €6.2 billion in Q1 2022.
ASML Holding NV gained 5.3% despite its profits falling two-fold in the first quarter, as well as sales declining by 19%.
Heineken NV increased by 5.2% thanks to its net profit rising 2.5-fold and sales jumping by 33%.
Shares of Credit Suisse AG decreased by 1.5% after the bank reported it had suffered a loss of about 600 million Swiss franks (or $630 million) after increasing legal provisions.
Siemens Energy AG finished the first quarter in the red, suffering losses amounting to €77 million compared to a €197 million profit in Q1 2021. Its intake has decreased by 27.5%, while revenue fell by 1.7%. As a result, the stock fell by 1.6%.