Europe close: Risk asset extend rally
By Alexander Bueso
Date: Thursday 21 Apr 2022
(Sharecast News) - European shares were mostly higher on Thursday as a big earnings surprise out of US electric vehicle maker investors Tesla boosted risk appetite across the world.
"If consumer spending is holding up well enough for Tesla to keep reporting decent numbers, then the market appears to be more confident that the US economy, and others too, can withstand the current expectations around inflation and interest rates," explained IG chief market analyst Chris Beauchamp.
The pan-European Stoxx 600 was up 0.32% at 461.57, alongside a 0.98% gain for the German Dax to 14,502.41.
Italy's FTSE Mib on the other hand drifted lower by 0.29% to 24,805.62.
Strategists at Citi on the other hand cautioned that tighter economic policy hadn´t really started yet.
Furthermore, in order to wrestle the inflation dragon to the ground, central bankers would need lower commodity prices, easing supply chain tensions and an improvement in the pandemic, they said.
Shares in Anglo American slipped 2% after the mining giant reported a 10% year-on-year fall in first quarter production and lowered its full-year forecast.
Sector peers BHP, which also reported lower production on Thursday, fell, as did Antofagasta, Rio Tinto and Glencore.
In other equity news, shares in online cosmetics seller THG soared 16% as the company said it had rejected a number of takeover approaches and reported a rise in annual core earnings and revenue.
Nestle edged up as the food group confirmed annual targets after price rises helped quarterly organic sales rise more than expected.
Engineering and technology firm ABB climbed after posting a sharp rise in orders during the first quarter.
Shares in Rexel, a French distributor of electrical supplies, leaped after the company said first-quarter sales rose 31.4%.
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