European shares, oil giants continue to make impressive gains

From the beginning of 2022 itself, all industrial activities are in full swing. More people are employed, and the industrial activities have attained momentum. The business travelers and investors are actively participating in financial activities. Recently, in the middle of May 2022, the European shares managed to rise by about 2%. The travel stocks surged and the global markets also registered gains. The smart investors assess the situation in a very alert manner. They also take into account factors such as interest rates, inflation, banking policies and any geo-political factor.

The leisure stock in Europe jumped by about 4.7% and was in the leading position. The pan-European Stoxx 600 managed to rise by about 2%. The smart investors are concerned about factors such as interest rate hikes, growth rates because they need to adjust their strategies as well as portfolios. On Wall Street, the stocks jumped, and this led to the S&P 500 shifting away from official bear market territory. These days the smart and concerned investors are also monitoring the geopolitical fallout from the war-torn Ukraine. The war is likely to stretch, and it is causing a shortage of many commodities. Russia has started threatening Finland as the leaders are committed to join NATO (North Atlantic Treaty Organization) on an urgent basis. If Finland and Sweden move forward and join NATO, the step is likely to amplify the tension.

Europe is a major customer of Russian gas. The European leaders are desperately looking for alternatives to secure alternative gas suppliers. In all the European countries, the financial experts and strategists are monitoring the inflation rate. Many experts are urging investors and company managers to proceed with proper planning although the economies are stabilized. If there is a reference to the individual share price movement, Fortum, the Finnish state-owned energy company and Sweden’s Storskogen Group managed to climb more than 11%. It is believed that the US economy is likely to expand 2.4% in 2022. The economists are assuming that in 2023, the US economy is likely to expand by 1.6%.

The oil market and the profit margin of giant companies

The oil was standing at $110 a barrel. Due to the global surge in oil and gas prices, Saudi Aramco managed to register its highest profit since 2019. With a net massive income of $39.5 billion in the first quarter, this state-owned energy giant registered tremendous growth of 82% in profits. The firm has reported that the significant boost in prices and production has enhanced its profit margin. Moreover, the Western nations are reducing their dependence on Russia to meet their energy needs.

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