FX.co ★ Strong statistics on the countries of the region pushes European stock market to growth

On Tuesday, the leading stock indicators of Western Europe showed growth amid fresh statistical data on the euro area.

Thus, at the time of writing, the composite index of the leading European companies STOXX Europe 600 increased by 0.12% to 433.4 points.

The French CAC 40 rose 0.35%, the British FTSE 100 gained 0.11% and only the German DAX sank 0.31%.

Rising and falling

The value of securities of the German energy company Uniper SE rose by 5.9%.

Quotes of the British company Centrica, engaged in the storage and supply of gas, jumped by 3.6%.

The market capitalization of French aerospace and defense electronics manufacturer Thales SA increased by 4.3%.

The share price of the Spanish financial company Banco de Sabadell SA rose by 3%.

The value of securities of the British military industrial company BAE Systems rose by 3.2% due to strong operating performance since the beginning of the second half of the year amid a weaker pound sterling. In addition, the management of BAE Systems confirmed its forecast until the end of this year, according to which it plans to increase revenue by 2-4%.

Quotes of the German manufacturer of military equipment and weapons Rheinmetall AG soared by 3.4%.

The market capitalization of the British mobile operator Vodafone Group decreased by 5.6%. In April-September, the company's adjusted EBITDA decreased by 4.4%. In addition, Vodafone's management downgraded its free cash flow forecast until the end of this year and said it expects earnings to be in the lower end of the range.

The share price of Swiss lender Credit Suisse fell 0.5% amid a global business restructuring.

Market sentiment

On Tuesday, European investors analyzed the latest data on the region. Thus, according to an interim assessment of experts, in the past quarter, the gross domestic product of 19 eurozone countries increased by 2.1% in annual terms and by 0.2% in quarterly terms.

Meanwhile, in September, the deficit of the foreign trade balance of the states of the euro region sank to 34.4 billion euros from 50.9 billion euros in August. At the same time, analysts predicted 44.5 billion euros.

This month, the indicator of investor confidence in the German economy rose to -36.7 points from -59.2 points in October. Experts expected it at -50 points.

According to the final data of the National Statistical Office of France Insee, in the past month, consumer prices (CPI) in the country increased by 7.1% in annual terms, which coincided with preliminary data and experts' forecasts. Recall that in September, the inflation rate in France amounted to 6.2%. At the same time, in the third quarter, unemployment in the country again fell to the lowest level in the last 14 years.

Meanwhile, the pace of growth in consumer prices in Spain in annual terms in October fell to 7.3% from September's 8.9%. Analysts have recorded falling inflation in the country for the third consecutive month.

At the end of September, the unemployment rate in the UK fell to 3.6% from 3.8% in August. At the same time, the level of average earnings of the Brits increased by 5.7% per month.

This week investors will shift their attention to the news from England. The country's government will publish a new financial plan on Thursday. Earlier, British Chancellor Jeremy Hunt had already announced that the country's leadership would send about 60 billion pounds in the form of tax increases and spending cuts to eliminate holes in public finances.

Trading results the day before

On Monday, the leading stock indicators of Western Europe closed in the green zone amid the release of strong statistics on the region. At the same time, market participants observed some caution, given the slow economic recovery of the eurozone countries.

As a result, the composite index of leading European companies STOXX Europe 600 grew by 0.14% to 432.86 points.

The French CAC 40 rose 0.22%, the UK FTSE 100 gained 0.92% and the German DAX gained 0.62%.

The value of securities of the German military-industrial company Rheinmetall AG jumped 6.7% on news of the purchase of the Spanish ammunition manufacturer Expal Systems SA. The transaction is worth 1.2 billion euros.

Quotes of the Swiss pharmaceutical company Roche Holding AG fell by 4%. On Monday morning, the company announced the unsuccessful results of the third phase of trials of a drug for the treatment of Alzheimer's disease.

The market capitalization of the French telecom operator Orange SA increased by 0.7%. Earlier, information appeared in the media about the purchase of two Swiss companies specializing in cybersecurity by Orange SA.

The share price of German conventional power generation company Uniper SE soared 17.5%.

The value of securities of the British organizer of publishing and exhibition events Informa rose by 6.6%. The day before, the company raised its profit forecast until the end of 2022.

British marketing group S4Capital rose 4.8% on reports of strong fourth-quarter revenue growth despite multiple macroeconomic headwinds.

The market capitalization of the Dutch automotive concern Stellantis rose 1.3% on news of a planned purchase of over $1 billion in microchips from German telecommunications chipmaker Infineon.

The share price of the German biopharmaceutical company MorphoSys has fallen by 29%.

On Monday, European investors analyzed the statistics for the region. Thus, in September, the volume of industrial production in the eurozone countries increased sharply by 4.9% in annual terms and by 0.9% in monthly terms. At the same time, experts expected an increase in the annual rate by 2.8%, and monthly by 0.3%.

An additional upward factor for the stock market in Europe on Monday were also reports from China on the development of a plan to support the real estate sector.

The new program provides for multiple measures to help businesses, including solving developers' liquidity problems and lowering the requirements for a down payment on the purchase of real estate. Analysts are sure that the new plan of the Chinese authorities is another important signal that the Chinese government intends to restore the country's economy with all its might.

Recall that at the end of last week, the Chinese authorities announced a policy adjustment in the fight against COVID-19, announcing the dissolution of quarantine camps.

As for the news from America, Christopher Waller, a member of the Board of Governors of the US Federal Reserve, called the reaction of financial market participants to data on slowing inflation "overly optimistic". In addition, Waller stressed that the US central bank still has a lot to do to finally stabilize the US economy.