VOT Research Desk
Market Analytics and Considerations
Thursday saw mixed trading on European stock markets, with Germany outperforming ahead of the latest UK fiscal statement and key Eurozone inflation data thanks to strong Siemens results.
The DAX index in Germany was up 0.4 percent at 04:10 ET (09:10 GMT), while the CAC 40 in France was down 0.1 percent and the FTSE 100 in the United Kingdom was down 0.4 percent.
Although the circumstances of the missile attack on a village in Poland near the Ukraine-Poland border late on Tuesday remain a mystery, NATO officials appear to have exonerated Russia of any immediate responsibility, allaying fears that the conflict between Russia and Ukraine was about to spill over into Western alliance territory.
The U.K. Chancellor’s Autumn Statement later in the session is likely to be the focus of attention elsewhere. The government is attempting to plug a significant fiscal “black hole,” which was made worse by Downing Street’s last attempt at a mini-budget, with substantial tax hikes and spending cuts on the menu.
The most important piece of Thursday’s European data schedule is the most recent CPI figure for the Eurozone for October. It is expected to show an annual increase of 10.7%, up 1.5% from the previous month. Going to the corporate area, Siemens (ETR: After the German engineering giant announced a dividend increase and a strikingly optimistic outlook for the upcoming year, as well as a better-than-expected fourth-quarter profit at its industrial business, SIEGn) stock rose 8%, reaching an eight-month high.
ETR: Thyssenkrupp On the back of significant price increases for steel and materials, the engineering company proposed a dividend for the previous fiscal year, its first payout in four years. This prompted the stock of TKAG) to rise by 0.9%.
Burberry, LONDON:After the British fashion house announced a new design strategy with the long-term goal of increasing sales, BRBY) traded largely flat.
Oil prices dropped on Thursday as geopolitical tensions eased after NATO officials said Russia wasn’t to blame for the missile attack on Poland, putting an end to fears that the war between Russia and Ukraine would get worse.
The Energy Information Administration’s data, which were made public on Wednesday, showed that crude stocks in the United States, which is the largest consumer of oil worldwide, decreased by 5.4 million barrels last week, roughly in line with the information that was made public the day before by the industry body, the American Petroleum Institute.
Notwithstanding, inventories of gas and distillate fills both rose by more than anticipated, leaving a hazy picture.
By 04:10 ET, U.S. Crude Oil exchanged 0.8% lower at $84.89 a barrel, while the Brent contract fell 0.5% to $92.38.
Additionally, EUR/USD traded 0.1% lower at 1.0383, while gold futures fell 0.3 percent to $1,769.90/oz.
