Easyjet goes public after results
Easyjet rose in declining share markets as disappointments compounded. The technology sector suffered from Microsoft’s disappointing results.
Easyjet Stock markets flew against the headwinds on Wednesday. Shares in the airline rose 9.7%, the biggest gain since March 9, 2022, after the group raised its profit forecast for the 2022/2023 financial year on the back of good sales in the first quarter and strong orders for the second quarter.
“EasyJet shows how post-pandemic recovery works.”
“EasyJet has shown how post-pandemic recovery is done,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. “Improving forecasting means we have our aircraft at the right airports, on the right routes, to capture the demand for holidaymakers returning to the skies in force.”
However, the jump in Easyjet’s performance did not allow the transport and leisure sector (-0.38%) to finish with progress. However, it paid off Wizz Air (+4.22%) and Ryanair (+2.28%), two other low-cost airlines.
“Microsoft’s disappointing forecasts and performance indicators reflecting persistent inflationary pressures in Europe and the US dampen optimism.”
Market optimism weakened after several disappointments and with the approach of key monetary policy meetings, on which the evolution of the indices will depend. “Microsoft’s disappointing forecasts and performance indicators reflecting persistent inflationary pressures in Europe and the US dampen optimism,” notes Philip Cohen, manager of Kiplink Finance.
A technology giant Microsoft After the US stock markets closed on Tuesday, the cloud sent a chill through the announcement that it may miss earnings expectations for the current quarter. “Microsoft’s weak outlook has implications for the wider technology sector,” said Michael Hewson, chief market analyst at CMC Markets. Stoxx 600 Technology lost 0.41%. Group of semiconductors ASMLIt managed to gain 0.23% after announcing its results on Wednesday.
“Big Financial’s results weren’t great and probably set the tone for the season. Big Tech is following and if we’re going to trust Microsoft, we’re in for a tougher ride,” said Oanda analyst Craig Erlam. “Microsoft’s guidance led to growing doubts among investors about the true status of future corporate earnings releases, especially for tech stocks, as many were optimistic about reports that were solid,” said Pierre Veyret, an analyst at ActivTrades.
The Stoxx 600 lost 0.29%. The Cac 40 was down 0.09%, the Dax was down 0.08% and the FTSE 100 was down 0.16%. Bel 20 X fell by 0.69%.
Among individual values, Rheinmetall, the maker of Leopard tanks with the Krauss-Maffei Wegmann group, lost 0.99% after hitting a historic high of 232 euros in reaction to Germany’s announcement that the Leopard 2 would be shipped to Ukraine. The group’s market value is approaching 10 billion euros after increasing 2.5 times in less than a year. Thus, the stock may claim a place in the Dax index.
Sea carrier Maersk saw its title decline by 6.23%. Value is suffering from overcapacity in the group, but it also reacted badly to the announcement that the alliance with MSC will end from 2025. The alliance aims to combat overcrowding and low demand in 2015, with competitive and profitable operations on key shipping routes from Asia to Europe, as well as across the Atlantic and Pacific oceans.