Main topics of the day in the markets of Europe: market recovery after the sharp decline, the formation of a coalition government in Germany, the interim budget in the United States



Leading stock indexes of Europe on Wednesday, rising after declining for seven trading sessions. Support to the European markets has had a steady growth of stock indices of the U.S. yesterday following a sharp fall on Monday.

DJIA index by the close of trading on Tuesday rose by 2.3%, the S&P 500 1.7%, the Nasdaq Composite 2.1%.

By 13:40 GMT the pan-European Stoxx Europe 600 rose 0.7%, compared with yesterday’s closing level against the background of rising British FTSE-100, Germany’s DAX and France’s CAC 40 0.6%.

According to the chief market analyst CMC Markets Michael Hewson, in the last few days the closure of the indexes, the DAX and the CAC-40 was below the 200-day moving averages that occurred for the first time since the third quarter of 2016, and this increases the probability that “in the coming days we will be in a consolidation period”.

Among the leaders of the increase in Europe on Wednesday, the shares of oil companies, the sector index grew by 1.1% thanks to positive corporate news.

The shares of Norwegian company Statoil ASA rose 3.5% amid reports of increased quarterly dividends after receiving exceeded the forecasts of net profit.

Shares of the British company Tullow Oil rose 1.1% after the message on reduction of losses in 2017 by 68%.

The price of the near contract on Brent crude to the current time has changed slightly compared to the level of yesterday’s close, reaching $ 66.85 per barrel.

Shares of French pharmaceutical company Sanofi fell 2.6% after the data on the reduction of net profit in the fourth quarter to 129 million euros compared to 790 million euros a year earlier.

Shares of Danish brewer Carlsberg fell 3.8% following the release of data on the decrease in profit in 2017 at 3.5% to 1.26 billion Danish kroner, reflecting a decrease in the beer market in Russia by about 4-5% (according to Carlsberg). While the market share of Carlsberg in Russia, which accounts for about a fifth of all sales of Carlsberg have decreased from 31.9 to 34.6%. In the company’s financial statements reflect a revaluation of Carlsberg brand in Russia is Baltika, which depreciated by 4.8 billion DKK.

Today came the data on industrial production in Germany in December. The reduction by 0.6% in comparison with November was neutrally received by investors on the background of statements of the Minister of economy of the country that the books of orders of the leading industrial companies in Germany indicate “energetic production” in the coming months.

According to European media, on the night of Wednesday, the unit of German Chancellor Angela Merkel’s CDU/CSU and the Social democratic party (SPD) has completed talks on forming a coalition government. If the agreement is signed, the political authorities will be able to resolve the uncertainty that arose in September last year after the parliamentary elections, which the CDU/CSU failed to get a majority of the majority.

In turn, the us media reported that the previous evening the House of representatives of U.S. Congress passed a temporary budget until March 23 to avoid the “closure” of the Federal government. The adoption of a biennial budget process was slowed by disagreements between the Republicans and Democrats in increasing military expenditure and migration policy.




Main topics of the day in the markets of Europe: market recovery after the sharp decline, the formation of a coalition government in Germany, the interim budget in the United States 07.02.2018

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