European Bourses Close Higher Tuesday; German Consumer Sentiment Drops to Historic Low

Last Updated: Tuesday, June 28, 2022 12:46 PM | MT Newswires

Tracking the Asia-Pacific market, stocks in Europe closed mostly higher Tuesday, extending gains for a third straight day.

The Stoxx Europe 600 gained 0.27%, London's FTSE 100 was up 0.90%, while France's CAC and Germany's DAX, respectively added 0.64% and 0.35%. The Swiss Market Index fell 0.89%.

Growth from Knowledge said the German consumer climate indicator is expected to decline to -27.4 points in July, which indicates the lowest level since the survey began in 1991. Rolf Burkl, GfK consumer expert, wrote in a note that the war in Ukraine and global supply chain woes are weighing heavily on consumer sentiment.

Meanwhile, Magyar Nemzeti Bank, the central bank of Hungary, made headlines Tuesday after it raised its base rate by 185 basis points to 7.75% to address increased inflation in the country. While some analysts were shocked by the rate hike, ING wrote in a note that it was a necessary move to allay worries in the market. "What is even more important, that from now on, the 1-week deposit rate and the base rate are at the same level. This makes the monetary policy toolkit - or at least the communication about that - simpler and easier to understand," it added.

In corporate news, two European tire manufacturers launched plans to exit the Russian market, citing its invasion of Ukraine and the resulting sanctions that have made it harder to operate in the country. At close of trade, France's Michelin (ML.PA) was up 0.59% and Finland's Nokian Tyres (TYRES.HE) fell 0.97%.

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