The key stock exchange indicators of Western Europe showed multidirectional dynamics on Tuesday. Market participants are analyzing the quarterly reports of key banks and leading companies in the euro region, and are also waiting for the results of the US Federal Reserve meeting.
At some point, the composite index of the leading companies in Europe STOXX Europe 600 increased by 0.08% - up to 426.42 points.
Meanwhile, the UK FTSE 100 rose 0.5%, the French CAC 40 shed 0.2% and the German DAX shed 0.6%.
Rising and Falling Leaders
French spirits maker Remy Cointreau SA surged 0.3% on news that the company's revenue rose 40% in the first quarter of fiscal 2023.
The share price of British low-cost airline easyJet Plc soared 1.5%. In the second quarter of fiscal year 2022, its pre-tax loss was reduced by a factor of three. At the same time, due to the increase in flight congestion, revenue increased significantly.
The market capitalization of French software developer Dassault Systemes SE rose 0.6% amid the company's report of a 19% increase in second-quarter revenue.
British consumer goods maker Unilever PLC soared 2.5%. According to the report for the second quarter of fiscal 2022, the company's sales level increased by 8.8%.
The value of shares of the Swiss bank UBS Group collapsed by 6.50%. A day before, the company's management reported a 5% increase in net profit in the second quarter, but the final figure was worse than analysts' expectations.
The market capitalization of Swiss chocolate maker Chocoladefabriken Lindt & Sprungli jumped 3.28%. A day before, the company reported a 36% increase in net profit in the first half of the year.
Market Sentiment
European market participants were focused on the results of the US Federal Reserve meeting, which will end on Wednesday. As analysts expect, the leadership of the US central bank will decide on the next increase in the base interest rate by 75 basis points - 2.25-2.5%. However, some experts do not exclude the possibility of a more significant rate hike - by 100 basis points at once amid a record level of inflation in the country.
In addition, this week investors are closely following the earnings reports for the second quarter of key banks and leading companies in the Euroregion and the world. Swiss creditor UBS Group has already reported its financial results. Market participants will continue to closely monitor the forecasts of companies in order to assess the risks of a recession in the global economy.
Trading Results the Day Before
European stock indicators showed an increase on Monday, while only the German DAX reported a fall, which was the result of weak macroeconomic data.
As a result, the composite index of the leading European companies STOXX Europe 600 increased by 0.13% to 426.25 points.
The highest results among the components of STOXX Europe 600 were shown by securities of the Swedish energy company Orron Energy AB (+15.1%).
Britain's FTSE 100 gained 0.41%, France's CAC 40 rose 0.33% and Germany's DAX shed 0.33%.
The value of securities of the Irish airline Ryanair Holdings Plc rose by 0.5% the day before.
The share price of the Dutch transnational company Royal Philips NV fell by 7.7%. In the second quarter of fiscal 2022, the consumer goods and medical device maker recorded a net loss amid continued logistics problems, anti-COVID restrictions in China and armed conflict between Russia and Ukraine.
The market capitalization of the British mobile operator Vodafone rose by 0.2% due to the report on the increase in revenue in the last quarter to 11.28 billion euros from 11.1 billion last year.
Germany's largest Russian gas importer, Uniper, plunged 12.4% and its parent company Fortum shed 10.4% on news that the German government plans to acquire a 30% stake in Uniper to provide it with additional assistance due to the reduction of Russian gas supplies to Germany.
The key reason for the negative dynamics of the German stock index DAX the day before was the release of domestic macroeconomic statistics. So, according to data published on Monday morning from the Ifo Munich Institute for Economic Research, in the outgoing month the business climate indicator in Germany fell to 88.6 points (the lowest level in two years) from 92.2 points in June. By the way, analysts predicted a drop in the indicator only to 90.2 points.
At the same time, the sub-index of German business expectations for the next six months fell to 80.3 points from 85.5 points, and the indicator assessing the current situation fell to 97.7 points from 99.4 points in June.