European stocks and oil prices rise but euro hits 5-year low

European stock markets and oil prices rose on Wednesday after recent steep losses, but the euro hit a five-year low against the dollar as traders weighed the widespread economic turmoil.

Elsewhere, the price of Dutch TTF gas in Europe briefly rebounded after Russian energy giant Gazprom cut gas supplies to Bulgaria and Poland.

The two EU member countries had not paid in rubles despite President Vladimir Putin’s announcement that Russia would no longer accept payments in other currencies – a retaliation for the West’s economic sanctions against Moscow following his invasion of Ukraine.

On Wednesday, traders were shedding “the familiar worries about tech earnings, inflation, interest rates, China’s lockdown … and war in Ukraine,” noted analyst Neil Wilson.

Asian stock markets closed earlier but suffered smaller losses than those seen on Wall Street on Tuesday.

The gloomy mood in the economy was compounded by weak earnings at some of the world’s biggest companies.

Tech firms, which rely on debt to drive growth, led Wall Street’s plunge amid fears the Federal Reserve is at the start of a period of steep interest rate hikes aimed at tackling searing inflation .

As the euro briefly dipped below $1.06 to record its lowest level since April 2017, analyst Wilson added that “the market clearly believes the Fed is going to hike rates and the ECB is going to stay arms crossed and doing nothing”.

As most Asian stock markets ended lower on Wednesday, Shanghai rebounded following a report that Chinese President Xi Jinping had pledged to boost infrastructure construction as a way to accelerate the economy. .

The comments were the latest from China’s top brass, who have made a series of promises in recent weeks to revive growth.

However, analysts said that was offset by leaders’ refusal to back down from their strict Covid lockdown strategy.

Oil prices – which have recently been under pressure due to concerns over weak Chinese demand – jumped on Wednesday in line with gas prices.

– Key figures at 11:00 GMT –

London – FTSE 100: UP 0.9% to 7,453.97 points

Paris – CAC 40: +0.9% to 6,469.52

Frankfurt – DAX: UP 0.5% to 13,828.26

EURO STOXX 50: UP 0.6% to 3,745.19

Tokyo – Nikkei 225: 1.2% decline to 26,386.63 (closing)

Hong Kong – Hang Seng Index: UP 0.1% to 19,946.36 (close)

Shanghai – Composite: UP 2.5% to 2,958.28 (close)

New York – Dow: DOWN 2.4% to 33,240.18 (closing)

North Sea Brent: +0.2% to $105.23 a barrel

West Texas Intermediate: UP 0.3% to $102.04 a barrel

Euro/dollar: DOWN to $1.0609 from $1.0636 on Tuesday evening

Pound/dollar: UP to $1.2583 from $1.2576

Euro/pound: DOWN to 84.31 pence vs. 84.55 pence

Dollar/yen: UP to 127.89 yen from 127.21 yen

Steve R. Hansen