European stocks are up on corporate earnings confidence. On Thursday, European stock markets rose as traders evaluated the global economy’s health. While taking in a flood of largely positive corporate earnings.
European stocks are trading in positive
The DAX index in Germany, and the CAC 40 in France. The FTSE 100 in the United Kingdom all saw gains at 03:25 ET (08:25 GMT).
The publication of higher-than-expected retail sales was seized upon by investors. A proof of the resiliency of the U.S. economy. Resulting in a bullish finish on Wall Street, which has boosted European shares.
European stocks taking a clue from ECB
Back in Europe, Christine Lagarde, president of the European Central Bank, stated clearly on Wednesday that a further rate increase of 50 basis points was forthcoming the following month.
The Eurozone economy has, however, also startled observers with its resilience in the face of ad hoc monetary tightening. And early this week the European Commission raised its economic projections. Adding that the region will probably avoid a recession this year.
The shares of the U.K.-listed bank Standard Chartered (LON: STAN). Which reported a 28 percentage-point- point rise in annual pretax profit, increased by 1.5 percent. After it raised its projections and launched a fresh $1 billion share buyback plan.
Corporate Earnings
After the founder of British Gas, Centrica (LON: CNA), announced a tripling of full-year profits. Following a spike in energy costs last year following Russia’s invasion of Ukraine. The stock of Centrica increased by 4%.
The shares of Pernod Ricard (EPA: PERP) increased by 4% as the second-largest spirits company in the world. Reported solid first-half profits, aided by price increases in the Chinese and American markets.
The share price of Commerzbank (ETR: CBKG) increased 6.5% after the German lender increased its profit forecast for this year. Bolstered by higher-than-anticipated net income in the 4th quarter.
On the other hand, Nestle’s (SIX: NESN) stock fell as the largest food company in the world revealed lower-than-anticipated full-year net profit, despite taking on rising raw material costs by raising customer pricing.
Crude oil up
On Thursday, oil prices increased as hope for a rebound in Chinese demand masked an increase in U.S. crude stockpiles.
According to information from the Energy Information Administration, which was made public on Wednesday, U.S. crude oil inventories increased by a little over 16 million barrels last week.
The stocks rose to their peak point as of June 2021. As a result of this. The EIA noted that the substantial build was mostly the product of a data correction. Which lessened its effect.
Additionally, according to data made public on Thursday, China’s air passenger traffic increased 34.8% in Jan. Compared to the same month last year.
Suggesting that after the country decided to abandon its strict zero-COVID policy, demand from the world’s largest crude importer will recover fairly quickly.
The price movement on the aforementioned daily Brent oil data is still within the bear flag chart pattern. That is developing, holding above the 85.00 psychological support mark.
A strong dollar later on today may contribute to the bias. Being tilted to the downside since this is a bearish continuation
According to the weekly API and EIA crude oil stock change data. Brent crude oil is trending higher this Thursday. Despite a significant stockpile in the U.S.
The consumption prediction revisions made by OPEC and the IEA for 2023 are the dominant factor.
Crude oil bulls are being driven by higher-than-expected demand as excitement over China’s resumption has boosted the requirement side.
Today’s key Scheduled Events and Impacting Factors
Gold futures Trading Up
Moreover, gold futures rose 0.4% to $1,851.85/oz.
On Wednesday, gold prices fell by roughly 1%. With the precious metal ending at its bottom point since the end of the previous year. Following a hotter-than-expected CPI report the day before. Markets digested a better-than-expected US retail sales print.
Both of these things boosted the US Dollar, which usually tracks XAUUSD in the other direction.
Euro is Stuck in the Same Band as the US Dollar. Looks at ECB
The euro is able to withstand some of Wednesday’s decline. Which motivates the euro against the dollar to retake territory – above the 1.0700 barrier on Thursday.
After slipping down into the New York closing. The US Dollar surged versus other currencies. The Euro found stability in Asia. The biggest losers today were the Australian and British dollars, which have modest increases.
The explosive 3.0 percentage-point growth in retail sales in Jan, which is above the expected 2.0% increase. And the upward revision of the earlier reading of -1.1% to -0.9% helped to strengthen the dollar.
The Federal Reserve is expected to respond to the positive statistics by becoming even more hawkish. Later on today, Cleveland Fed President Loretta Mester will speak.
