European market: moderate optimism on the stock markets

  •   29/04/2020 - 11h40
  •   DEHOUI Lionel

After several days of significant decline, the European market is finally giving positive signals. It looked like something happened to boost them all. Because all the important values are on the rise this Tuesday on the financial market from Europe to America. Moreover, it is a rise that came at the right time, but it remains moderate all the same. Here's a quick tour of the most prominent ones.

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European market: moderate optimism on the stock markets

The green stock markets in Europe

The European stock exchanges started the week on a very good note. They are registered in the green without impressing too much. Increases almost insignificant, but important. Take for example the London Stock Exchange, which gained 0.4% on Tuesday, followed in its wake by the Paris Stock Exchange, which gained 0.3%. The Frankfurt Stock Exchange completes the list by taking 0.6%. These increases come in the wake of Wall Street (Dow Jones +1.5%).


An analyst interprets the situation

The various stock exchanges are in the green like Wall Street on the eve of and regardless of the oil market situation. The latter is set in the red about oil prices while there is talk of a rise in the European market. According to analyst Vincent Boy, the rise is explained by the reopening of the economic sector. It is already in force in some American and even European states. Its impact is visible in the market.

Indeed, it has led to a persistence on the part of investors to nurture the idea that a recovery in economic activity will be effective. Moreover, for them, the recovery will certainly be very quick and painless. Vincent Boy immediately assured that this would not be the case. Considering the multiple health precautions in place in the countries in order to avoid a new wave, he believes that the recovery will be very slow.


Some European values

The various European stock exchanges which recorded slight increases are the consequence of the state of certain companies. For example, UK energy giant BP lost 0.1% on the London Stock Exchange. This follows the reporting of a profit in which the underlying annual cost of supply was divided by 3 in the first quarter of 2020. This left the group at $0.8 billion. BP is not alone in Europe.

In Zurich, there is ABB, which takes 4.6% following the announcement of a 2% decline in operating EPS to $0.30. A decline recorded for its first quarter 2020 activity, beating the consensus of 10 cents. In addition, its operating margin did not remain without pressure. Indeed, the operating EBITA margin declined by 10% to 1 point. As for the HSBC banking group, its results remained stable.

Information : It is true that investors remained insensitive to the figures of HSBC Bank as well as those of Novartis (gain of 0.3%) in Zurich. But they could not be in the presence of the results of Capgemini which recorded a rise of 6.8% on the Paris Stock Exchange. Investors congratulate the group as well as the Swiss bank UBS which gained 5% in Zurich.