European equities are mixed; the telecoms industry is weighing. The coming week marks the official begin of the next European quarterly earnings cycle.
European Shares market trading Lower to Mixed
Following a great week, European share stabilized on Friday, despite disappointing telecom earnings.
The DAX index traded 0.1% down, the FTSE 100 for the United Kingdom traded 0.1% less. Whereas the CAC 40 in traded 0.2 percent higher at 03:20 ET (07:20 GMT).
European Stocks eyes New Earning Results
The beginning of the fresh European quarterly earnings cycle is next week. However, the shares of Ericsson (ST: ERIC), a manufacturer of telecom devices, dropped over 5 percent. After the company announced a 62% decline in Q2 corrected operating income. Blaming “difficult market circumstances” despite rising 5G demand.
The shares of Nokia (HE: NOKIA) also dropped over 5 percent when the Finnish telecom company lowered its full-year forecast. Following announcing that revenues in 2023 will fall short of expectations. On July 2, Nokia is expected to release its complete Q2 results.
Confidence over the ‘soft touchdown’ of the US
The major European stock markets saw solid rises on Thursday. Especially the wide-ranging Stoxx 600 index climbing 0.6%, marking the 5th straight strong session. And best streak of daily advances in almost 3- months.
These increases came following the publication of figures showing fast declining U.S. inflation. Indicating that the Fed may soon be halting its escalating trend of rate hikes. Presumably probably a final rise later in the month.
Soft touchdown’ euphoria has been sparked by this, raising hopes. Which the world’s biggest economy and a key engine for worldwide development, the United States, might prevent an economic downturn this year.
Europe’s economic condition is less positive, especially in the Britain. Wherein figures issued on Thursday revealed that the country’s economy shrank in May. The BoE’s med-term inflation objective of 2% is being exceeded by over 4 times. While inflation is at present at the highest rate within the G7.
This suggests that there will be more interest rate increases in the future. Which will drag down the economy and increase the likelihood of a slump later this current year.
Crude Oil is expected to have a good week.
Despite a little decline on Friday, prices for crude oil were still expected to post a third straight weekly rise. Due to the expectation of reduced supply and weak U.S. inflation numbers.
On Thursday, a number of Libyan crude oil deposits, including the second-biggest in the nation. Sharara, had to be shut down, whereas shipments from Nigeria’s Forcados terminal were stopped due to a possible piping break.
Following Saudi Arabia’s and Russia’s pledge of fresh output restrictions this past week. Those interruptions in supply signal tight markets for oil during the subsequent months.
By 3:20 ET, the price of U.S. crude futures was down 0.3 percent at $76.65 per bbl. And the price of Brent was down 0.4 percent at $81.05 mark.
