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Europe midday: Shares slip off highs but still in positive territory

By Frank Prenesti

Date: Monday 23 May 2022

(Sharecast News) - European stocks slipped off morning highs but remained in positive territory as investors shrugged off inflationary worries that have underpinned sentiment in recent weeks.
The pan-European Stoxx 600 was up 0.43% after a mixed session in Asia where US President Joe Biden is touring and indicated he could look at easing China trade tariffs as he also announced a major new economic deal with Asian partners.

US stock futures rose sharply in early premarket trade on Monday.

"Risk is reasonably well bid this morning with gains for the main European indices and US stock futures are higher. The FTSE 100 rose about 1%, whilst the DAX added around 1.5% in early trade. Oil prices moved up with the broad risk bid and the dollar softer," said Markets.com analyst Neil Wilson.

Germany's DAX was up by 0.83% on news Siemens Energy had offered to buy all outstanding shares of the renewables firm Siemens Gamesa for €4.06bn.

German sentiment was also boosted as business sentiment unexpectedly improved in May, according to a survey released by the Ifo Institute.

The business climate index increased to 93.0 from 91.9 in April, coming in above expectations for a reading of 91.4.

Meanwhile, the expectations index ticked up to 86.9 in May from 86.8 the month before, while the current situation index rose to 99.5 from 97.3.

Shares in drug maker Idorsia were also up after its blood pressure drug reported positive trial results.

Kingfisher shares rose after the B&Q owner unveiled a surprise £300m share buyback alongside Q1 results showing a rise in like-for-like sales over pre-pandemic levels.

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