On Tuesday, European stock indexes are rising noticeably, following the Asia-Pacific stock markets. The British FTSE 100 gained 0.59% to balance at 7481.4 points, the German DAX soared 1.06% to 14477.84 points and the French CAC 40 climbed 0.86% to 6639.09 points. In Tuesday's trading, Europe's major stock indices picked up the momentum of Asia-Pacific exchanges, which closed on the upside. The main impetus for the rise in Asian indices was news of the lifting of some restrictions in China, imposed amid a new outbreak of COVID-19 in the country.
The focus of European investors this week is on expectations of inflation in the UK. According to analysts' preliminary scenarios, the annual rate rose by 5.9% last month and the monthly rate by 0.6%. The previous day Europe's leading stock exchanges reported mostly declines. Only the British FTSE 100 index showed positive dynamics, whose growth was stimulated by a 5-6% increase in global oil prices. In addition, on Monday market participants followed the coronavirus situation in China and the conflict in Eastern Europe. As a result, the British FTSE 100 gained 0.51% to close at 7442.39 points, the French CAC 40 sank 0.57% to 6582.33 points and the German DAX lost 0.6% to report at 14326.97 points.
The STOXX Europe 600 index of Europe's leading companies gained 0.04% the previous day, ending the trading session at 454.79 points. Despite the slight increase, the composite indicator extended its streak of increases to four consecutive sessions. The main leaders in the Stoxx Europe 600 on Monday were securities of Rheinmetall AG (+9.12%), Norsk Hydro ASA (+8.22%), Antofagasta (+8.08%), Boliden AB (+7.59%) and Anglo American (+6.12%). Shares in Nokian Renkaat, a Finnish producer of tyres for harsh climates, were the weakest performer, losing 13.3% in value. UK grocery retailer Ocado Group PLC was down 7.74% and German online food delivery service Delivery Hero SE dropped 7.45%.
The securities of German software maker SAP SE sank 1.7%. On the eve, the company's management announced the resignation of chief financial officer Luka Mucic in March 2023. The value of shares of Italian oil and gas company ENI SpA rose by 2.9% on Monday. The main reason for the strong positive dynamics of quotations was the information about the discovery of new oil and gas fields in Algeria. According to preliminary forecasts of ENI SpA experts, they contain about 140mn barrels of oil. Amid strong growth in global commodity prices the day before, securities of other European oil and gas companies also reported tangible gains. Thus, British Petroleum's share price instantly soared by 4.1%, France's TotalEnergies SE added 0.6%, Norway's Equinor ASA rose by 5.2% and Shell gained 4.8%.
Experts believe that the current aggravated geopolitical situation in Eastern Europe creates a solid base for a permanent increase in the value of commodity assets. Throughout March, increased volatility in stock markets has become commonplace. Traders are trying to forecast the outlook for economic growth and corporate profits against a backdrop of runaway inflation, interest rate increases by the world's leading central banks and a new outbreak of coronavirus in the PRC. In addition, the tense situation in Ukraine, where fighting has been going on for more than three weeks, remains the focus of market participants' attention. The conflict between Russia and Ukraine has already caused serious disruptions in global supply chains, as well as spurring a surge in metals and energy prices.
Another concern for investors has been the news of the spread of the Omicron strain mutation across Europe. In recent days, local media have increasingly reported an increase in stealth-omicron infections in England, Germany, Italy, the Netherlands, France and Switzerland.
