Stellantis’ revenue increased by 12% in the first three months of the year, outperforming market expectations because of good pricing and the types of cars sold, which helped offset the volume impact of the semiconductor shortage.
The company’s Milan-listed shares, which are the result of a merger between Fiat Chrysler and Peugeot (PUGOY) maker PSA last year, surged as much as 5% in early trade, making it one of the strongest performers on Italy’s blue-chip index. They were up 1.6 percent.
However, the impact of the chip shortage was visible in a 12 percent drop in shipping numbers. The company’s adjusted operating profit margin was higher than expected.
The company also benefited from its high exposure to a greater U.S. economy and a European post-COVID re-opening, while the Chinese economy was less affected.
On Thursday, global share markets were still surging, buoyed by the fact that the U.S. interest rate hike, the biggest in more than two decades, had not been more draconian.
Government bond yields in Europe are relatively stable ahead of the Bank of England’s fourth rate hike since December. Oil prices have leveled out following a near 5% increase in response to the European Union’s decision to prohibit Russian oil imports.
Investors also applauded China’s central bank’s promise to provide greater monetary policy support to businesses affected hard by the new COVID-19 outbreak.
As Western allies strive to further isolate Moscow from financial markets for its war in Ukraine, the European Union needs to slash off Sberbank, Russia’s largest lender, from the SWIFT global payment system.
The latest plan is part of the E.U.’s sixth and most severe round of sanctions, which includes a six-month crude oil embargo.
The E.U. had previously exempted Sberbank from the most severe sanctions because it is one of the key payment conduits for Russian oil and gas. The current move could be a watershed moment for the E.U., which is still reliant on Russian oil and gas despite rising energy prices.
The Moscow Stock Exchange’s (MOEX) condition as a major exchange was revoked by the United Kingdom, removing some tax benefits for new investors.
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