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05.08.202107:33 Forex Analysis & Reviews: European stock markets rose as a result of trading

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Exchange Rates 05.08.2021 analysis

Britain's FTSE 100 rose 0.3%, Germany's DAX rose 0.9%, and France's CAC 40 rose 0.3%. Italy's FTSE MIB added 0.5%, while Spain's IBEX 35 gained 0.2%.

Investors' focus remains on the quarterly reporting season in Europe and the United States, as well as on the global incidence of COVID-19, given the rapid spread of the new delta strain.

The Dutch ASML, Europe's largest manufacturer of equipment for the production of chips, rose 2.9% by the end of the day. Infineon Technologies rose 4.4%, Austrian semiconductor manufacturer AMS rose 4.7%, SAP rose 1.2%.

The share price of Prosus N.V., which united the international Internet assets of the South African holding Naspers, increased by almost 3% thanks to the rise in the share price of China's Tencent Holdings, in which the share is the largest asset of Prosus.

Commerzbank AG shares fell 5.8% by the end of the day. The German bank recorded a net loss of € 527 million in the second quarter due to restructuring costs and write-offs.

"The restructuring of Commerzbank is in full swing, and we are unlikely to see its positive consequences earlier than in 2022, - experts say LBBW Research. - It is unlikely that the bank will discuss the payment of dividends or share buybacks until 2023."

Statistics released on Wednesday showed retail sales in the euro area rose 1.5% in June versus the previous month and 5% versus the same period last year. Analysts on average forecast an increase of 1.7% on a monthly basis and 4.5% on an annualized basis.

Retail sales were up for the second month in a row as COVID-19 restrictions eased in many countries in the region and increased demand.

The composite purchasing managers index (PMI) of 19 eurozone countries rose to 60.2 points in July 2021, up from 59.5 points in June, final data from the research organization Markit Economics show. Preliminary data indicated a value of 60.6 points.

The indicator of activity in the service sector of the eurozone in July jumped to 59.8 points from 58.3 points a month earlier. Earlier it was announced that the index had been raised to 60.4 points.

Thomas Frank
Analytical expert of InstaForex
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