European stock indicators show steady growth since the beginning of the trading session on Monday. At the same time, the highest results are demonstrated by the energy and metallurgical sectors, which are steadily increasing amid a rise in commodity prices.
At one point the composite index of the leading companies in Europe STOXX Europe 600 rose by 0.95% - up to 417.71 points.
Leading the growth list in the STOXX Europe 600 is Norwegian company Nel ASA, which offers solutions for the production, storage and distribution of hydrogen from renewable energy sources. The price of the company's shares soared by 13.7% at one point.
Britain's FTSE 100 rose 1.37% to 7,257.12, the French CAC 40 gained 1.1% to trade at 6,102.24, and the German DAX rose 1.11% to 13,007.26.
Rising and Falling Leaders
The value of securities of the British company Euromoney, specializing in information for business, jumped by 9.5%. The day before, the group, led by the French investment company Astorg Asset Management, announced its readiness to buy Euromoney for $1.97 billion.
British online food delivery company Deliveroo is down 1.9% as of this writing on lower full-year revenue guidance. The key reason for the worsening economic prospects, Deliveroo's management cited growing pressure on consumers.
Auto insurer Direct Line's market cap tumbled 12.2% after the company lowered its full-year profit forecast, citing increased market volatility as the reason for its pessimism.
Finnish bank Nordea Bank Abp rose 2.1% on a better-than-expected second-quarter net income report. In addition, the company's managers announced that it is planning to launch a new share buyback program for up to 1.5 billion euros.
European carmaker Stellantis NV jumped 1.4% on news that the company will end a joint venture that produces Jeep cars in China.
The market capitalization of Europe's largest clothing retailer H&M plunged 0.7%. The day before, the owner of the Swedish company announced the beginning of the process of curtailing business in Russia.
Current Market Situation
The main catalyst for the steady growth of key European indices on Monday was the general growth of world stock exchanges. Thus, following the results of Friday, the main stock indicators of America reported an increase by an average of 2%, while the stock market of the Asia-Pacific region rose by 1-2% on Monday.
The reason for the spectacular rally on Wall Street the day before was the higher-than-expected financial statements of leading corporations for the second quarter, as well as the weakening of investors' fears about the prospect of a July increase in the base rate by the US Federal Reserve by 100 basis points at once.
Recall that according to the statistics published last week from the United States, last month the inflation rate in the country rose to 9.1% in annual terms from 8.6% in May.
An additional factor of investor optimism on Monday was a spectacular rise in prices for commodities. Thus, the cost of oil soared by 2.8%, while copper prices strengthened by 3%. As a result, the oil and gas sector of Europe grew by 3.2%, and the metallurgical sector - by 2.6%.At the same time, securities of the British oil and gas company British Petroleum rose 3.2%, the British-Dutch Shell - 3.7%, and the Norwegian Equinor - 3.4%.
Swiss commodities and rare earths supplier Glencore soared 4%, Britain's Anglo American 3.4% and Australia's BHP Billiton 3.1%.
This week, investors will continue to wait for the European Central Bank's decision on the key rate, which will be made public on Thursday. Experts suggest that the ECB will increase the rate by 25 basis points.
In addition, European investors are closely watching the region's statistics and the financial statements of leading companies. The final data on the change in consumer prices in the euro area in June will be published on Tuesday.
The focus of European stock market participants is still the political situation in Italy. There, last week, the mayors of 110 cities, as well as the heads of trade unions and business associations, appealed to Prime Minister Mario Draghi to reconsider his decision to resign.