European equities: Uncertainty leads to moderate losses

PARIS / LONDON (dpa-AFX) – Europe’s stock exchanges largely fell slightly on Monday after a friendly start of trading. On the market, reference was made to the continuing increase in the number of corona infections worldwide and to growing uncertainty with regard to the development of interest rates.

The leading index of the Eurozone, the EuroStoxx 50 (EURO STOXX 50), fell by 0.22 percent to 4296.26 points around noon. The CAC 40 in Paris dropped 0.21 percent to 7204.09 points. The FTSE 100 in London, on the other hand, was stable at 7483.86 points. Due to the impending tightening of US monetary policy and the spread of the Omikron variant of Covid-19, the market strategists at the major Swiss bank Credit Suisse recommend that stocks in the portfolio are currently weighted neutrally.

Before the beginning of the reporting season attracts the attention of investors in the course of the week and important new data on price developments in the USA are also expected on Wednesday, only a few companies are currently in the focus for news.

In Switzerland, the shares of Credit Suisse (Credit Suisse (CS)) at the top of the SMI gained 1.6 percent and profited from vague merger speculation. According to a report by the Internet finance portal “Inside Paradeplatz”, the bank could be sold to Italy or France. Rumors were reportedly circulating that the Chairman of the Board of Directors, Antonio Horta-Osorio, was promoting a merger. The talk is of Italian UniCredit, and the French BNP Paribas is also said to be interested. There is also support from shareholder and major investor Harris Associates. On the market it was said that a merger could help the bank to break free.

Among the small caps in Switzerland, Idorsia’s shares jumped at times by more than ten percent. Most recently, the plus was 2.5 percent. The biotech company received US approval for its sleeping pill daridorexant.

Otherwise, it was mainly analysts’ judgments that moved. Schneider Electric lost 2.0 percent. They had previously been downgraded to “Sell” by Citigroup. Hermes lost 2.2 percent and suffered from a downgrade from “Buy” to “Neutral” by UBS.

Orsted’s shares rose 4.0 percent in Copenhagen and benefited from Goldman Sachs recommending them for sale. The share price fell noticeably in 2021 and again in the first week of trading in 2022, stated analyst Alberto Gandolfi. Despite a rotation out of the capital-intensive “green energy” and despite company-specific issues, concerns about the Danish offshore wind energy company are now more than priced in ./ck/jha/


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