European stocks shine but US mixed as Netflix plunges

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European stocks rose on Wednesday as investors followed corporate earnings and developments in the Ukraine conflict, while US stocks ended mixed and Netflix shares fell after the streaming giant reported a drop. the number of subscribers.

Oil prices continued to slide after falling the day before on demand concerns.

“The good market sentiment that allowed Wall Street to close solidly higher yesterday continued in Europe,” Fiona Cincotta, market analyst at City Index, told AFP.

Frankfurt gained 1.5% and Paris rose 1.4%, helped by the news of a return to growth in euro zone industrial production in February.

London added 0.4%, dragged down by mining stocks which were penalized following disappointing performance by Rio Tinto due to the pandemic and production issues.

European stocks and oil fell on Tuesday as Moscow launched its eastern offensive in Ukraine and after the IMF cut its forecast for global economic growth in 2022 by 0.8 percentage points, largely due to related inflationary concerns. to war and the pandemic.

“While the Russian war remains a key driver in the markets, the bad news has been priced in for now,” Cincotta said.

“Instead, some areas of optimism are emerging with outperforming banks after the ECB (European Central Bank) eased nerves by announcing that all major eurozone banks can withstand Russian write-offs,” he said. -she adds.

– “Shocking” Netflix –

Across the Atlantic, Wall Street had a mixed session, with the Dow Jones posting a decent gain but the Nasdaq dropping more than a point thanks to Netflix, which posted disappointing results after Tuesday’s close.

The streaming giant plunged just over 35% after announcing its first quarterly subscription decline in a decade, blaming the erosion on the suspension of its service in Russia due to the invasion of Ukraine by Moscow.

“There (are) no two ways to look at it, Netflix was a shock and is likely to cut the wind from the recent Nasdaq rally, or at least pause it,” Cincotta said.

The tech-heavy index closed down 1.2%.

“That said, overall the earnings season has been reasonably strong so far, economic data has also shown no major cracks, helping to keep risk sentiment going,” he said. -she adds.

Michael Hewson of CMC Markets said the fall in Netflix shares “appears to lead to a significant reduction in risk in the most valued areas of the US market.”

In Asian trading, concerns about the Chinese economy hit trading in Shanghai and Hong Kong.

Shanghai’s main stock index was the biggest pullback in Asia, losing 1.4% as the People’s Bank of China (PBoC) kept key rates unchanged amid uncertainty over the impact of restrictions ongoing Chinese on Covid.

Hong Kong – which fell on Tuesday on concerns over the ongoing crackdown on Beijing’s tech sector – also ended lower.

“PBoC policymakers are realizing the futility of cutting rates during a lockdown, as policies incentivizing lending will have minimal short-term positive impact on activity as long as mobility restrictions remain in place,” said noted independent analyst Stephen Innes.

– Key figures around 2055 GMT –

New York – Dow: UP 0.7% to 35,160.79 (closing)

New York – S&P 500: 0.1% down to 4,459.45 (close)

New York – Nasdaq: 1.2% drop to 13,453.07 (closing)

EURO STOXX 50: UP 1.7% to 3,896.81 (closing)

London – FTSE 100: 0.4% up to 7,629.22 (close)

Frankfurt – DAX: UP 1.5% to 14,362.03 (closing)

Paris – CAC 40: UP 1.4% to 6,624.91 (closing)

Tokyo – Nikkei 225: 0.86% up to 27,217.85 (close)

Shanghai – Composite: DOWN 1.4% to 3,151.05 (close)

Hong Kong – Hang Seng Index: DOWN 0.4% to 20,944.67 (close)

Euro/dollar: UP at $1.0850 vs. $1.0788 late Tuesday

Dollar/yen: DOWN to 127.84 yen against 128.91 yen

Pound/dollar: UP to $1.3065 from $1.2998

Euro/pound: UP at 83.03 pence against 82.99 pence

North Sea Brent: +0.1% to $107.32 a barrel

West Texas Intermediate: FLAT at $102.56 a barrel

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