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There is strong interest in the opening stock

It is hoped that the mildly pathogenic omicron virus variant will bring the pandemic period to an end quickly with stock prices opening early last week, especially in Europe. First of all, it is worth noting the travel-related stocks, such as the German tour operator TUI, or the most famous Spanish chain, Melia or Autogrill, which was famous for its restaurants next to the highways.

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Traders are more cautious about paperwork as changing consumer habits and perceived persistent concerns can erode revenues more seriously.

Belgian cinematographer Kinepolis and operator of a huge fleet of cruise ships were unable to join the rally because activities previously considered safe on their profile may not be in vogue for a long time to come. The situation of the airlines is also turbulent. On the other hand, the expected promise of a boom in air traffic this spring has given a boost to exchange rates, but investors in troubled giants with large loans are likely to see further capital increases.

The reopening of the economy to oil securities is also a critical factor, and their expectations of higher interest rates due to higher inflation are also fueling the rally. The ideal environment would be for producers with generally high dividend yields if sector expectations were determined by this single factor. However, the behavior of OPEC and other policy makers, the problems of medium-term extraction and investment, and the focus on renewable energy are very subtle.

More and more analysts are suggesting that the previously forgotten and troubled European financial sector may be the real winner of the opening rally. As the pandemic subsides, not only will banks be able to return to their previous share buyback and dividend policies, but they will also be able to compensate their investors for the previous seven tight years. A reviving economic environment, backed by fiscal policy, will help boost lending and reduce the non-performing loan ratio. Eurozone investors are already preparing for a monetary tightening by 2023, but the UK rate-raising cycle has already begun.

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The contents of this document do not constitute an incentive to invest, investment advice or an invitation to subscribe, buy or sell a security! This letter is intended to provide information to investors for information purposes only and has been prepared by PFN Prestige Financial Zrt. Erste Befektetési Zrt, mediator.