Europe midday: Shares rebound on upbeat earnings; Clariant surges
By Frank Prenesti
Date: Wednesday 27 Apr 2022
(Sharecast News) - European stocks rebounded in late morning trade after a rout on US markets overnight as investors digested a slew of corporate results amid worries over gas supplies as Russia's Gazprom turned off the taps to Poland and Bulgaria.
The pan-European Stoxx 600 index was up 0.83% with all major bourses back in positive territory as strong earnings drove sentiment. US stocks plunged overnight, with investors worrying over a fresh surge in Covid-19 cases in China, high inflation, and the potential threat of nuclear war as a result of Russia's invasion of Ukraine.
Gazprom announced it was halting gas supplies to Bulgaria and Poland for failing to pay for gas in roubles as Moscow hit back against Western Sanctions over its unprovoked invasion of Ukraine.
''Energy is being increasingly weaponised as the war in Ukraine looks set to enter the long haul and expectations grow that a crude oil embargo will end up being slapped on Russia by the EU," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
"Sanctions isolating from Russia from the global financial systems have prompted this strategy to drive a ruble rebound, after the currency went into freefall following the invasion, and it's been working helped by the initial 20% interest rate hike and currency controls."
"The expectation of another supply squeeze on global markets, if more consumers turn their back on Russian oil has pushed up Brent crude above $106 dollars a barrel."
In equity news, shares in Swiss chemicals company Clariant surged after it concluded its probe of whistleblowers' allegations that some staff manipulated accounts in 2020 and 2021 to help meet financial targets, and found o impact on sales and cash previously reported.
Swedish banks SEB and Svenska Handelsbanken both jumped after upbeat first-quarter earnings.
Industrial software company Aveva slumped 13% as the company said a revenue hit from sanctions on Russia would hit its operating profit this year.
Bank of Ireland shares fell as chief executive Francesca McDonagh stepped down after 4½ years in the role to join Credit Suisse. The bank announced after the close of trading on Tuesday that McDonagh would leave the bank by September for, it is understood, another job with another European financial institution.
Deutsche Bank fell after warning that the Russia-Ukraine conflict could hurt full-year results.
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