Europe open: Shares edge lower after ECB hawkish stance

by | Mar 11, 2022

westminster

European shares edged lower at the open on Friday, compounding a sharp fall in the previous session after the European Central Bank said it would withdraw stimulus this summer.

The pan-European Stoxx 600 index was down 0.08% in early deals after closing 1.7% lower on Thursday. Britain’s FTSE 100 bucked the trend with a 0.39% gain after official data showed the UK economy bounced back strongly in January after taking a hit from the Omicron variant and Plan B restrictions, but the outlook was less upbeat.

GDP grew 0.8% after contracting by 0.2% in December, coming in comfortably ahead of expectations of 0.1% growth. This leaves GDP 0.8% above pre-pandemic February 2020 levels.

Investors were also digesting news from the ECB, which signalled an increase in interest rates as soaring inflation outweighed concerns about the fallout from Russia’s invasion of Ukraine.

In equity news, shares in Italian defence company Leonardo jumped to the top of the benchmark index with a gain of 11% after it said increased European Union defence spending would boost cash flow.

Among stocks, Italian fashion group Tod’s gained 3.3% after expressing optimism for 2022 despite global uncertainties after returning to an operating profit last year.

EssilorLuxottica shares gained after the luxury eyewear group reported its best quarter of 2021 with all regions exceeding pre-pandemic sales.

Lanxess strengthened 4.7% after the German speciality chemicals maker issued quarterly profit outlook above expectations.

Shares in UK online supermarket and technology group Ocado jumped after a patents infringement case against it brought by Norwegian warehouse robot maker AutoStore was rejected by the International Trade Commission.

On the downside, shares in Russian gold miner Polymetal resumed their slide, down almost 14%, as Western sanctions began to bite and the board of compatriot steelmaker Evraz quit en-masse after major shareholder Roman Abramovich was also hit by financial measures.

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