European shares ended trading, Friday, at the end of trading week, with an initial boost supported by the British government’s retreat from tax cuts, but the impact of this payment faded in light of the continuing uncertainty surrounding its financial position.
The pan-European Stoxx 600 index closed up 0.6 percent, achieving gains for the second consecutive session, but it moved far away from the high levels recorded in the session immediately after British Prime Minister Liz Terrace announced the cancellation of some provisions of the government’s financial program.
Terrace fired Finance Minister Kwasi Quarting and said Britain would press ahead with plans to raise corporate taxes.
The pound against the dollar fell 1.2 percent, near its lowest levels in the session, while the British two-year bond yields fell in recent trade, after reversing the gains already before the Terrace announcement.
The British FTSE 100 index of leading stocks also fell from its highest level during the session, and ended it up 0.1 percent.
The pan-European Stoxx 600 index has fallen 19.8 percent so far this year, with markets feeling nervous about massive interest rate increases around the world pushing the economy to the brink of recession. An energy crisis exacerbated by the Russian-Ukrainian conflict has also heightened concerns about an economic slowdown in Europe.
However, Friday’s gains helped the Stoxx index erase some of the losses incurred in the first three days of the week.
Most of the sectors listed on the Stoxx 600 rose, led by real estate and utilities shares.
On the corporate front, Temenos tumbled 19 percent after the Swiss banking software group cut its indicative profit estimates for 2022.
(Archyde.com)