# US, European shares rise as earnings mixed; euro dives to lowest since 2017
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-27
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Stocks Rise Amid Euro Weakness After Russia Halts Gas
Meta Description: Get the latest on major equity indexes rising, Wall Street rebounding, euro dropping, and more in the global stock market. Stay informed with Reuters.
URL: https://financedigest.com/us-european-shares-rise-as-earnings-mixed-euro-dives-to-lowest-since-2017html

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By Chris Prentice and Tommy Wilkes

WASHINGTON/LONDON (Reuters) – Major U.S. and European equity indexes rose in choppy trade on Wednesday, and the euro dropped to its weakest since 2017 after Russia halted gas supplies to Bulgaria and Poland and [investors worried](https://www.financedigest.com/uk-stocks-slip-as-rate-hike-worries-grip-investors.html "UK stocks slip as rate hike worries grip investors") more about the region’s economy.

Wall Street rose, rebounding the day after a rout drove the [Nasdaq to its lowest close since](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010") December 2020.

The dollar continued its surge, on course for its [biggest monthly gain since](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps") January 2015 as expectations mounted that the Federal Reserve will hike interest rates aggressively in coming months and the U.S. economy will be stronger than the [euro zone](https://www.financedigest.com/euro-zone-economic-sentiment-rises-in-january-to-seven-month-high.html "Euro zone economic sentiment rises in January to seven-month high").

The Dow Jones Industrial Average rose 113.79 points, or 0.34%, to 33,353.97; the S&P 500 gained 24.36 points, or 0.58%, to 4,199.56; and the Nasdaq Composite added 77.51 points, or 0.62%, to 12,568.25 by 11:14 EST (1514 GMT).

[Strong earnings reports](https://www.financedigest.com/strong-nighttime-earthquake-jolts-sleeping-mexicans-at-least-one-death-reported.html "Strong nighttime earthquake jolts sleeping Mexicans, at least one death reported") boosted U.S. [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks"), with Microsoft Corp jumping over 6% and Visa Inc surging over 8%.

Some of Wall Street’s biggest names have reported results this week, with [investors seeking a counterweight to the deluge of negative news that has pounded stocks](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency").

Google-parent Alphabet Inc fell 3.6% as slowing YouTube ad sales [pushed quarterly revenue below expectations](https://www.financedigest.com/hawkish-ecb-comments-push-up-rate-hike-expectations.html "Hawkish ECB comments push up rate-hike expectations"). Boeing Co dropped 8.8% after it disclosed $1.5 [billion in abnormal costs](https://www.financedigest.com/the-inflation-quirk-that-is-costing-spain-billions.html "The inflation quirk that is costing Spain billions") from halting 777x production.

[European shares](https://www.financedigest.com/european-shares-set-for-weekly-gain-on-u-s-inflation-outlook.html "European shares set for weekly gain on U.S. inflation outlook") rose, boosted by commodity stocks, though gains were limited as Russian energy giant Gazprom halted the gas supplies and German consumer morale sank. \[.EU\]

The Euro STOXX 600 was up 0.45%, while Germany’s DAX eased 0.04%. Britain’s FTSE 100 climbed 0.58%.

[European corporate earnings](https://www.financedigest.com/european-shares-rebound-with-focus-on-italian-politics-earnings.html "European shares rebound with focus on Italian politics, earnings") were mixed. [Credit Suisse reported another quarterly loss and Deutsche Bank](https://www.financedigest.com/bank-shares-rise-after-credit-suisse-rescue-eases-crisis.html "Bank shares rise after Credit Suisse rescue eases crisis") warned the Russia-Ukraine conflict could hurt annual earnings.

Russia cut the gas flow to Bulgaria and Poland for [rejecting its demand to pay](https://www.financedigest.com/unicredit-shareholders-urged-to-reject-ceo-orcels-pay-rise.html "UniCredit shareholders urged to reject CEO Orcel’s pay rise") in roubles, taking direct aim at European economies. This led [investors to sell](https://www.financedigest.com/investors-often-ignore-capital-gains-tax-but-should-consider-selling-now-to-avoid-a-higher-future-tax.html "Investors often ignore capital gains tax, but should consider selling now to avoid a higher future tax") euros and snap up U.S. dollars.

MSCI’s benchmark for [global equity](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows") markets rose 0.03% to 655.2. Emerging [markets stocks](https://www.financedigest.com/the-secret-to-stock-market-success.html "The Secret to Stock Market Success") fell 0.6%.

U.S. Treasury yields slid as data suggested trade [dented economic growth last quarter and investors worries about the “restrictive” policy the Fed will pursue next week to combat inflation](https://www.financedigest.com/inflation-boosts-jeronimo-martins-q4-profit-but-dents-margins.html "Inflation boosts Jeronimo Martins’ Q4 profit but dents margins"). \[US/\]

The U.S. trade [deficit in goods widened](https://www.financedigest.com/euro-zone-current-account-deficit-widens-again-on-large-energy-bill.html "Euro zone current account deficit widens again on large energy bill") to a record in March, the Commerce Department said. Trade has subtracted from gross domestic [product growth](https://www.financedigest.com/tire-recycling-downstream-products-market-to-witness-an-outstanding-growth-by-2021-2031.html "Tire Recycling Downstream Products Market to Witness an Outstanding Growth by 2021-2031") for six straight quarters, the longest such stretch since the beginning of 2016.

The euro dropped as low as $1.0512, its weakest against the [dollar since](https://www.financedigest.com/dollar-retreats-headed-for-biggest-weekly-loss-since-mid-january-bitcoin-down.html "Dollar retreats, headed for biggest weekly loss since mid-January; bitcoin down") Mary 2017. Analysts [cited the war in Ukraine and growing concerns](https://www.financedigest.com/natwest-limits-customers-crypto-transfers-citing-scam-concerns.html "NatWest limits customers’ crypto transfers, citing scam concerns") that the bloc’s economy will fall into recession this year.

The euro’s blatant inability to rally on hawkish comments by [European Central Bank](https://www.financedigest.com/european-central-bank-to-raise-deposit-rate-to-3-25-by-mid-year-reuters-poll.html "European Central Bank to raise deposit rate to 3.25% by mid-year: Reuters poll") members means lingering vulnerability to an external environment negatively affected by an ever-concerning situation in Ukraine and generalized USD strength,” ING FX strategists wrote in a note to clients.

The dollar index measuring the greenback against a basket of rivals, hit a five-year high.

“The U.S. dollar benefits from the prospect of an ongoing flight to safety liquidity bid,” said Jeremy Stretch, head of G10 FX strategy at CIBC.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2022/04/96-660x500.jpg)

Graphic: Euro vs U.S. dollar – https://fingfx.thomsonreuters.com/gfx/mkt/zdpxogxldvx/euro%20dollar%202.PNG

CHINESE REBOUND

There was more selling in Asia, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.82% after hitting its [lowest since](https://www.financedigest.com/uk-mortgage-approvals-hit-lowest-since-june-2020.html "UK mortgage approvals hit lowest since June 2020") mid-March. Tokyo’s Nikkei fell 1.17%.

Australian [shares lost 0.78% as inflation](https://www.financedigest.com/shares-rise-but-concern-mounts-over-inflation-flare-up.html "Shares rise, but concern mounts over inflation flare-up") hit a 20-year high, bringing interest rate rises closer.

Battered Chinese stocks bucked the trend, gaining almost 3% as data showed faster [profit growth at industrial firms](https://www.financedigest.com/pizza-firm-dp-eurasia-delivers-profit-rise-evaluating-russian-business.html "Pizza firm DP Eurasia delivers profit rise, evaluating Russian business") in March than a year earlier.

The previous session, China stocks fell to their lowest in two years on fears that persistent [COVID lockdowns would hurt economic activity](https://www.financedigest.com/asias-factory-activity-contracts-despite-chinas-covid-reopening.html "Asia’s factory activity contracts despite China’s COVID reopening") and disrupt global supply chains.

Russia’s move to halt gas supplies to Poland and Bulgaria sent [oil and gas prices higher](https://www.financedigest.com/oil-set-to-end-turbulent-2022-modestly-higher.html "Oil set to end turbulent 2022 modestly higher"), though not by much.

Brent crude futures were last up 0.12% to $105.12. U.S. West Texas Intermediate crude [futures gained](https://www.financedigest.com/dollar-gains-as-wall-street-retreats-on-future-fed-hikes.html "Dollar gains as Wall Street retreats on future Fed hikes") 0.13% to $101.57.

Elsewhere in commodities, spot gold prices fell 1.1%, under [pressure from the stronger dollar](https://www.financedigest.com/pound-hits-10-month-peak-euro-up-as-dollar-under-pressure.html "Pound hits 10-month peak, euro up as dollar under pressure"). \[GOL/\]

(Additional reporting by Kanupriya Kapoor and Joice Alves; Editing by John Stonestreet, Mark Heinrich and David Gregorio)


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