European shares climb on easing energy worries as Norway strike ends

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 30, 2022. REUTERS/Staff

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  • Just Eat Takeaway tops STOXX 600 on Grubhub-Amazon partnership
  • Faurecia falls after Barclays downgrade

July 6 (Reuters) – European shares rose on Wednesday as an end to strike by Norwegian oil and gas workers eased worries of energy supply crunch, while Just Eat jumped after Amazon agreed to buy a stake in unit Grubhub.

The continent-wide STOXX 600 (.STOXX) was up 1.7%, after ending 2.1% lower in the previous session as the strike in Norway threatened to cut energy supplies. read more

Germany’s DAX (.GDAXI) gained 1.6% after losing almost 3% in the previous session as industrial orders grew surprisingly in May, reversing the trend after a third consecutive monthly drop. read more

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Stock markets have seen this year as constant flow of negative news ranging from talks of gas rationing in Europe, COVID-19 curbs in China and most recently a political crisis in Britain have dampened appetite risk.

The STOXX 600 has shed 16.5% so far this year as investors juggled to adjust their expectations of corporate profits and economic growth in the wake of aggressive central bank moves to tame rising prices.

“There’s an increasing acceptance of the risks of a global recession … it’s fair to say we have seen a fairly significant de-rating across every sector of the European market, some of the caution and worries of recession are already reflected in some of these prices,” said Richard Dunbar, head of multi-asset research at abrdn.

All eyes are on May Eurozone retail sales data at 0900 GMT amid red-hot inflation. Data last week showed consumer prices in June hit a record high and cemented the case for the European Central Bank to start raising rates this month, its first increase since 2011.

All European sectors were higher trading, with travel and leisure (.SXTP) and technology (.SX8P) up 2.9% and 2.7%, respectively.

Among individual stocks, Just Eat (TKWY.AS) jumped 17.2% after Amazon (AMZN.O) agreed to take a 2% stake in struggling US meal delivery business Grubhub and said it will offer its Prime members access to the service for one year. read more

Abrdn (ABDN.L) gained 7.6% after the British asset manager announced a 300 million pounds share buyback programme.

Trainline (TRNT.L) climbed 20.6% after the UK rail operator forecast robust FY23 revenue growth as demand for travel rebounds.

Faurecia (EPED.PA) fell 4.7% after Barclays double-downgraded its rating on the French car parts maker’s stock to “underweight”.

Uniper (UN01.DE) slid 7.5% as its Finnish parent Fortum (FORTUM.HE) was in talks with Germany to ease the financial problems of the German utility.

Separately, the S&P also placed Uniper and Fortum ratings on creditwatch negative.

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Reporting by Devik Jain in Bengaluru; Editing by Sherry Jacob-Phillips and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.


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