As July 2022 is inching to its end, the European stocks have managed to cement their positions. The European shares managed to touch the highest point in the last seven weeks. Many companies managed to deliver impressive results and added excitement to the economic environment. Britain's Smurfit Kappa and UniCredit managed to provide some comfort. The STOXX 600 index (.STOXX) registered a gain of 0.5%. The shares of French IT consulting firm Atos (ATOS.PA) rose by 16.2% and climbed on the top of the index. UniCredit (CRDI.MI) managed to register a gain of 8.6% and it also moved ahead with its plan of share buyback. This helped Italy's MIB index (.FTSE MIB) to climb 1.5%.
There are many factors that influence the sentiments of the investors. The performance of the Microsoft Corp (MSFT.O) lifted the sentiments. Also, there was a robust ad sales growth reported by Google parent Alphabet Inc (GOOGL.O). The economists and strategists monitor the performance of giant companies to understand the whole economic situation. The astute investors assess the quarterly performance of the companies and there are others who collect updates more on a stock by stock basis. There are other financial aspects to consider such as inflationary pressure, steps of the central banks and energy supplies.
A growth of 23.1% is likely to be expected in the Second-quarter earnings for such commercial establishments that are part of the STOXX 600. Russia has reduced gas supplies to Europe. Currently, the relations between Russia and the European Union are very strained. The reduced gas supplies will make it costlier and harder for the bloc to fill the storage. Some countries such as Germany import a vast volume of Gas from Russia. Financial strategists and other investors are also focusing on the US Federal Reserve's interest rate hike plans.
The travel and leisure sector (.SXTP) registered a growth of 3%. Moreover, it also received positive comments from Wizz Air (WIZZ.L). As the quarterly revenue of this low-cost airline quadrupled, it managed to jump 10.4%. Now, more and more people are traveling and so airlines are registering impressive gains. French payment company Worldline (WLN.PA) managed to rise 13.8%. Smurfit Kappa rose by5.5. In the first-half core profit, the Europe's largest paper packaging producer reported a jump of 50% and it also raised its interim dividend.
The oil market continues to remain strong
The oil continues to remain in a strong position. Many countries are trying to raise their production. Many European countries depended on Russia for their energy requirement. As Russia is being isolated, and there are tight energy supplies in Europe, the Brent oil futures have increased. There is more demand for the US crude. The United States has announced its intention to sell 20 million barrels of oil. The US administration has said that oil from Strategic Petroleum Reserve will be used to counter price hikes. The Russia-Ukraine war has affected oil supplies.
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