European markets move higher after recent market turmoil; Hexagon rallies 8%

  • The pan-European Stoxx 600 was up around 0.55 percent during early morning deals, with most sectors and major bourses in positive territory.
  • Swedish industrial technology firm Hexagon surged to the top of the European benchmark on Wednesday. Its shares were up over 8 percent amid stronger-than-anticipated earnings news.
  • After finishing Tuesday’s European session deep in negative territory, markets in the U.S. went on a roller-coaster ride during its trading session — having opened significantly lower, only to close sharply higher.

European stocks were higher on Wednesday, as markets worldwide attempted to shake off the major volatility seen in recent sessions.

The pan-European Stoxx 600 was up around 0.55 percent during early morning deals, with most sectors and major bourses in positive territory.

Oil and gas stocks were the top performers on Wednesday, up more than 1 percent amid earnings news. Statoil announced stronger-than-anticipated fourth-quarter results, marking the latest oil company to benefit from a rapidly improving environment for big energy firms. Statoil’s shares were up more than 2 percent during early morning deals.

Swedish industrial technology firm Hexagon surged to the top of the European benchmark on Wednesday. The company said like-for-like sales in the final three months of 2017 had increased sharply from the previous quarter. Its shares were up over 8 percent on the news.

Meanwhile, Danish enzymes maker Novozymes slipped to the bottom of the index after it reported weaker-than-expected earnings results. The firm cited challenging conditions in agriculture markets as it missed analyst projections for fourth-quarter results. Its shares were down almost 5 percent.

Topsy-turvy moves

After finishing Tuesday’s European session deep in negative territory, markets in the U.S. went on a roller-coaster ride during its trading session. The Dow Jones industrial average started the session significantly lower, before rallying, closing up 567.02 points at 24,912.77. The index traded in a range of 1,167.49 points during the session.

Some of the reasons that investors gave to the topsy-turvy moves seen on Wall Street included fears over interest rates, obscure volatility funds that use leverage, and computer-driven trading. Consequently, indexes in the Asia-Pacific region bounced back following Wall Street’s performance, going back over some of the losses seen in the previous session.

Looking to the central banking space, ahead of the Bank of England’s monetary policy meeting and inflation report — both of which are due out Thursday — the European Central Bank’s Governing Council is due to hold a non-monetary policy meeting in Frankfurt, where the group is set to exchange views with the EU’s chief Brexit negotiator, Michel Barnier.

Speaking of Brexit, teams from both the European Union and the U.K. are expected to carry on their latest round of negotiations in Brussels. In the latest surrounding the topic, a document seen by the likes of Reuters suggests that the EU wants the ability to restrict the British nation’s access to the single market during the transition period after the U.K. leaves — as a means to penalize the country if it violates agreed rules.

Source: CNBC



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