All fears of investors regarding a potential correction currently seem unfounded. Following the motto, "what is expensive can become even more expensive," both European and American stock markets continue to climb. New record highs in the Euro Stoxx 600, along with a slightly rising British and German stock market, present a distinctly positive picture in Europe.
In Europe, news about U.S. peace efforts with Russia currently dominates the daily headlines. This has led countries to consider further European military armament, benefiting companies in the defense sector and boosting stock values in this industry. Even if the U.S. approach is criticized from a European perspective, it has the advantage of bringing movement into the previously deadlocked situation.
European Stocks Keep Rising
The top-performing stocks in the European indices include HSBC Holdings, which led the British index with a 1.9% gain, followed by GlaxoSmithKline, which saw a price increase of 1.7%. In the Euro Stoxx 600, the struggling German steel company Thyssenkrupp shined with a 7% gain, placing it ahead of Erste Bank, which still managed a solid 3.2% increase.
In the German leading index, Commerzbank's stock rose by 1.9%, outperforming Daimler Truck Holding, whose shares gained 1.7%.
Will Britain's Inflation Surge Trigger a Correction?
The British stock market could see some excitement this morning when the inflation rate is reported. The expectation on the European island is that price increases will rise by 0.3 percentage points to 2.8%. Should inflation unexpectedly climb even higher, it could trigger an impulse that initially leads to a slight correction in the British stock market. However, from a technical perspective, such a correction is not yet apparent.
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