On Tuesday, the major European stock exchanges exhibited a trend of growth. An upward trajectory was observed across multiple exchanges, signifying a positive market atmosphere.
Shortly after market opening, various exchanges in Europe showed increased percentages. Germany’s Dax rose by 0.3 percent, Britain’s FTSE 100 increased by 0.9 percent, and France’s CAC 40 ascended by 0.5 percent.
The broad Euro Stoxx 600 also experienced a growth of 0.5 percent, reflecting the overall positive trend in the European market.
However, the major European semiconductor manufacturer Infineon reported weaker-than-anticipated guidance for the forthcoming financial year. The company’s first quarter results, which concluded in December, were revealed in the morning. Infineon predicted a strong demand from the automotive industry, but warned of pressure on orders from other industrial customers. The company’s profit margin was projected to be around 18 percent, falling short of the anticipated 23 percent margin.
Following this announcement, Infineon’s share experienced a decline of 2.1 percent in the morning market.
On a more positive note, the British oil company BP reported a better-than-expected result for the fourth quarter of the previous year. The company made a net profit of approximately $3 billion, surpassing the expected profit of $2.8 billion. Despite a decline from the peak year of 2022, the company’s earnings remained significantly high in comparison to its historical performance. Investors were particularly encouraged by BP’s announcement of a planned share buyback worth $3.5 billion during the first half of this year.
The newly appointed CEO in January, Murray Auchincloss, reaffirmed the company’s commitment to investing in the green transition, aligning with the global trend towards sustainability.
In addition to BP, the world’s largest oil companies, Exxon, Chevron, and Shell, also reported expectations of improved results for the end of the previous year.
Following the announcement, BP’s share saw an increase of 4.9 percent at the stock market opening.
German industry surprisingly strong at the year’s end
Today, the German factory orders for December were reported, and they surpassed all expectations. The number of orders grew by a significant 8.9 percent in December from November, according to the country’s statisticians, reflecting a year-on-year improvement of 2.7 percent.
The results exceeded economists’ expectations, who had predicted a decrease of 0.2 percent from the previous month and a 5.3 percent decline from the previous year. Even the most optimistic forecasts had expected an increase of 5.0 percent month-on-month and a decrease of 1.9 percent year-on-year.
This encouraging news seemed to strengthen the euro, which saw a 0.1 percent increase against the dollar following the release of the statistics.
Later in the afternoon, figures regarding the development of retail trade in the euro area will be released. For December, retail trade is expected to have declined by 1 percent from the previous month and 0.8 percent from the previous year.
