European Stocks Positive Despite Global Growth Worries, Gas Supply Threat

European markets turned positive on Wednesday from previous day’s mostly lower trading, despite worries of a slowdown in global growth as well as concerns over gas supplies being cut to Poland and Bulgaria by Russia.

Russian energy giant Gazprom said it has turned off gas supplies to the two countries Wednesday morning, and that exports will not be restored until payments are made in the Russian currency.

The pan European Stoxx 600 gained 0.9 percent to 445.21 following a 0.9 percent decline in the previous session.

The U.K.’s FTSE 100 Index gained 0.9 percent to 7,449, France’s CAC 40 index grew 0.5 percent to 6,448.5, and German DAX gained 0.4 percent to 13,810.49. In the previous session, Germany’s DAX shed 1.20 percent, France’s CAC 40 dropped 0.54 percent, while U.K.’s FTSE 100 edged up 0.08 percent.

Asian markets ended trading on a mixed note amidst recovery in the Chinese benchmarks and a muted sentiment in the other bourses. Overnight, the Wall Street had plunged heavily as worries of aggressive rate hikes by the Fed had triggered concerns of a recession in the economy.

Further, Germany’s consumer confidence is expected to decline further to a new historic low in May, according to survey results from the market research group GfK.

In Finland, separate survey results showed that consumer confidence weakened to the lowest since April 2020, and industrial morale remained unchanged in April. Statistics Finland said the consumer sentiment index decreased -11.7 in April from to -10.5 in March.

In the corporate space, several European banks reported their earnings. Credit Suisse Group AG shares were losing 0.7 percent after the Swiss banking major reported a wider net loss in its first quarter reflecting litigation expenses and weak revenues.

Deutsche Bank shares were down 5 percent despite reporting higher profit and revenues in its first quarter.

Shares of Lloyds Banking Group gained 1.4 percent after the British bank raised fiscal 2022 outlook for banking net interest margin despite reporting weak first-quarter results.

Swedish financial group Skandinaviska Enskilda Banken AB or SEB were up 8 percent on higher first-quarter results.

Among others, German automotive giant Mercedes-Benz Group AG were gaining after the company reported higher first-quarter results and maintained fiscal 2022 outlook.

Shares of Symrise AG were up 5 percent after the German maker of flavors and fragrances reported strong sales growth in the first quarter, and confirmed fiscal 2022 and medium term targets.

British drug maker GlaxoSmithKline Plc were gaining more than 2 percent after reporting strong growth in first-quarter earnings and turnover. The company also reconfirmed its full-year 2022 guidance.

Public transport company Go-Ahead gained 2 percent after it said fiscal 2022 results would be ahead of view, despite slightly lower first-half pre-tax profit.

In the losers, Puma shares were down 2 percent despite higher profit and sales in the first quarter with improved demand.

Uniper SE was trading 2 percent lower after the German electrical utility company said it expects to report a loss for the first quarter, below the current market expectations mainly due to gas storage optimization. The company further backed its fiscal 2022 earnings expectations.

Insurer AVEVA Group plc’s shares plunged 14 percent after the company said it expects revenue growth to be lower in fiscal 2023 than 2022. This was despite reporting 18 percent revenue growth in the fourth quarter on a pro forma organic constant currency basis.