Equities in Europe rise timidly, vigilance on Italy

PARIS, July 20 (Reuters) – Major European stock markets rose moderately at the start of trading on Wednesday as concerns over energy supplies eased but political tensions in Italy prompted caution. In Paris, the CAC 40 gained 0.3% to 6,220.07 points around 08:10 GMT. In London, the FTSE 100 takes 0.44% and in Frankfurt, the Dax grabs 0.14%. The EuroStoxx 50 index is up 0.09%, the FTSEurofirst 300 is up 0.18% and the Stoxx 600 is up 0.29%. Reports from Reuters that the Nord Stream 1 gas pipeline is expected to resume service on Thursday as planned eased fears over Russia’s gas supply to Europe and helped equity markets rise. The fear of a global recession is not completely dismissed, however, warns Rodrigo Catril at NAB. Investors, in addition to company results, are also paying attention to the political situation in Italy. Council President Mario Draghi will submit to a vote of confidence by the Senate on Thursday after an ongoing speech to avoid a snap election. In the bond market, the ten-year BTP yield fell 14 basis points to 3.293%. At the head of the CAC 40, Carrefour grants itself 2.77% after announcing the signing of an agreement to sell its stake in its activity in Taiwan to Uni-President. Publicis takes 2.39% and WPP 2.61% after the American competitor Omnicom published quarterly results on Tuesday evening above expectations. In Frankfurt, Uniper advances 6.83% as press reports multiply about a possible bailout. The Bloomberg agency reported that a deal on bailing out the gas giant was close to being struck with the German government which could inject billions of euros and take a direct stake. Down, ASML drops 1.35%, with analysts pointing to a lower annual revenue forecast than initially announced. OVHCloud (-2.71) and Virbac (-4.64%) are penalized by reductions in recommendation to “sell” for the first and “strengthen” for the second. (Laetitia Volga, editing by Kate Entringer)