The leading European exchanges went out of trading on Wednesday with price premiums curbed. After clear gains in early trading, the mood clouded over and the indices limited the gains. Market observers pointed to the rising US bond yields as a negative factor.
Rising growth and inflation expectations in the US are considered to be the trigger for the higher returns. There was also disappointing news from the US labor market in the middle of the week.
At the end of the session, the Euro-Stoxx-50 gained a moderate 0.14 percent to 3,712.78 points. The DAX in Frankfurt closed at 14,080.03 points and up 0.29 percent. The hope of an early return to normalcy in the German economy had driven the DAX to a new record high of 14,197 points in early trading. The FTSE-100 index in London went 0.93 percent higher at 6,675.47 points from trading.
In a European industry analysis, car values accelerated to the top positions. The analysts at UBS raised their price targets significantly for the advantages of Volkswagen and the papers of Continental. The driver for Volkswagen is the ID.3 model as the greatest opportunity for electromobility, according to the study. UBS is now voting for Continental with “Buy”. Volkswagen gained 4.7 percent and Continental advanced 5.4 percent.
Number templates also came into focus. The Stellantis share fell by a moderate 0.2 percent after gains. The merger partners of the new auto company Stellantis, Fiat Chrysler and PSA, closed the past year with profits of billions. The Peugeot manufacturer PSA achieved a net profit of 2.2 billion euros regardless of the corona crisis. In the previous year it was 3.2 billion euros. The previous Italian-American manufacturer Fiat Chrysler (FCA) achieved an adjusted pre-tax profit of 3.7 billion euros last year.
The shareholders of the shop pharmacy reacted disappointed to the outlook of the online drug retailer and the stocks fell by a whopping 6.3 percent. Jefferies analyst Alexander Thiel said in a first comment that the annual targets for this year were only at the lower end of expectations. Despite the recent losses, the share is one of the big winners of the corona crisis with a plus of more than 300 percent in the past twelve months on the financial market.
Prudential stocks rose a meager 0.03 percent after showing results. The British life insurer surprisingly increased its profit in 2020. In the past year, adjusted operating profit rose by 4 percent to 5.5 billion US dollars thanks to strong business in Asia.
For papers from the logistics group Kuehne + Nagel, it rose by 7.1 percent according to the figures for 2020 and optimistic statements about the coming year.