European Stocks Cautious; Energy Stocks Weak

European stocks were trading lower on Thursday, the last day of March. Energy stocks were hit following reports that U.S. President Joe Biden’s administration is considering a massive release of crude from U.S. reserves to fight inflation.

The investors continues to be concerned about the geopolitical crisis in the European region amid the ongoing attacks, and the fears of a fresh offensive in eastern Ukraine.

As per reports, Biden administration is preparing a plan to release 1 million barrels of oil per day for about six months from the strategic petroleum reserve.

The pan European Stoxx 600 dropped 0.3 percent to 459.02 following a 0.7 percent decline in the previous session.

The U.K.’s FTSE 100 Index lost 0.3 percent at 7,555.36, France’s CAC 40 index shed 0.6 percent at 6,701.92, and German DAX dropped 0.4 percent to 14,550.22.

Asian markets mostly ended in the red on Thursday as sentiment was dampened amidst a drop in China’s PMI readings, and also following The Wall Street that suffered overnight.

In France, flash data from the statistical office Insee showed that the country’s harmonized inflation hit a fresh record high in March largely driven by energy prices.

Germany’s retail sales grew in February, albeit at a slower-than-expected pace, for the first time in three months. Further, data from Destatis showed that Germany’s unemployment rate remained unchanged in February.

According to data published by the Central Bureau of Statistics in the Netherlands, retail sales in the country increased at a softer pace in February amid a decline in food sales.

In the corporate space, energy major BP plc was down 2.1 percent; Shell PLC down 1.02 percent; and French major TotalEnergies SE was down 1 percent. Russia’s Gazprom PAO, meanwhile, was up 12 percent.

Among others, H & M Hennes & Mauritz AB was trading down 10 percent. The Swedish apparel manufacturer reported a profit in its first quarter, compared to last year’s loss with strong sales. However, its profit was lower than analysts’ estimates and sales growth slowed down following the war in Ukraine.

German real estate business Deutsche Wohnen SE stock fell 2.3 percent after reporting weak profit in its fiscal 2021.

Solar energy equipment supplier SMA Solar Technology AG was up 0.8 percent despite reporting a loss in its fiscal 2021 , a reversal from last year’s profit. The company also warned about first-quarter results.

Gerry Weber International AG shares gained 4.2 percent after the German fashion manufacturer and retailer reported preliminary fiscal 2021 normalized consolidated EBITDA significantly above the original forecast of a negative low double-digit million figure.

In U.K., Provident Financial plc traded 2.1 percent higher after reporting a profit in its fiscal 2021, compared to last year’s loss.

Euromoney Institutional Investor PLC was up 2.1 percent. The company said it delivered further strong revenue growth during the second quarter and that it remains well placed to deliver full-year results in line with the Board’s expectations.

Tate & Lyle PLC stock gained 2.8 percent after the supplier of food and beverage ingredients said it signed an agreement to acquire Chinese dietary fibre business China’s Quantum Hi-Tech (Guangdong) Biological Co., Ltd for a total cash consideration of $237 million.

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