European stocks open to close, earnings, data and WEF in Davos

LONDON (AP) — European stocks closed higher on Wednesday as global markets tried to recover from a broad-based slide in the previous session.

The pan-European Stoxx 600 provisionally closed 0.8% higher. Oil and gas stocks rose 2.1% to lead gains as most sectors and major bourses entered positive territory.

The biggest trade in European stocks came after regional markets pulled back on Tuesday, following negative global sentiment as US markets struggled to sustain a rally after weeks of losses.

There was some positive data on Tuesday with a flash Purchasing Managers’ Index (PMI) reading for the euro zone in May coming in at 55.8, slightly above estimates, as trade growth across the continent slowed but remained stable. remained resistant. Still, global concerns about inflation and growth kept a lid on gains.

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On Wall Street, US stocks were mostly higher as traders awaited the minutes of the latest Federal Reserve monetary policy meeting. The Fed raised interest rates by half a percentage point at its May 4 meeting.

The World Economic Forum continued in Davos on Wednesday with the event bringing together political and business leaders from around the world. This year’s summit comes after several years of the Covid-19 pandemic and in the midst of Russia’s invasion of Ukraine, which is at the top of the agenda.

CNBC spoke to a wide range of leaders, including the CEOs of RWE and Rabobank, Dutch Prime Minister Mark Rutte, and Spanish Deputy Prime Minister Teresa Ribera, among many others.

On the data front, German GDP grew by 0.2% in the first quarter of 2022, the Federal Statistics Office said on Wednesday, as Europe’s largest economy narrowly avoided a recession thanks to heavy investment. in construction and machinery.

In terms of individual stock price movement in Europe, Austrian electricity provider Verbund rose 9% to the top of the Stoxx 600 after proposing a one-time special dividend distribution for fiscal 2022.

At the bottom of the blue-chip European index, UK sportswear retailer JD Sports sank 6% after announcing the departure of chief executive Peter Cowgill.

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