Lufthansa slashed its 2024 earnings outlook, expecting adjusted earnings before interest and taxes (EBIT) of 2.2 billion euros, down from a previous forecast of stable earnings compared to 2023. The airline reported a first-quarter loss of 849 million euros, with strikes impacting earnings by around 350 million euros. Lufthansa shares fell by more than 4 per cent to a five-month low.
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European stocks were on track to outperform Wall Street on Friday due to high demand for exporter shares as major currencies in the continent dropped against a strong dollar.
European Central Bank policymakers will discuss green monetary policy and their upcoming strategy review at a retreat in Ireland next month.
The EURUSD fell to a near five-month low around 1.0660 due to speculation that the European Central Bank will begin reducing interest rates from the June meeting.
Stocks and the euro were steady ahead of an European Central Bank meeting on Thursday, after stubborn U.S. inflation numbers triggered the biggest global market selloff in months and left Japan’s yen at a new 34-year low.
The European Central Bank (ECB) decided to hold its Main Refinancing Operations Rate steady at 4.5% to maintain downward pressure on consumer price inflation. ECB President Christine Lagarde warned of a weak economy with risks to growth tilted to the downside. The strong US Dollar is also contributing to the weakness in the EURUSD pair. The Dollar Index (DXY) is near a four-month high, and market expectations for Federal Reserve rate cuts have been pushed back due to strong US consumer price inflation and core Producer Price Index data.
President Nikos Christodoulides visited Lebanon to address the increased flow of Syrian refugees to Cyprus, with over 15 boats carrying 800 migrants arriving in the last week. The president discussed ways to stop the influx with European Commission president Ursula von der Leyen and agreed on messages to convey to the Lebanese government. Cyprus would push for a bigger EU assistance package for Lebanon if the flow of migrants stopped, implying that lack of action from Lebanon could affect the aid. Lebanon, home to two million Syrian refugees, has received minimal EU support compared to other countries like Turkey and Egypt. The effectiveness of Lebanon’s government in tackling trafficking networks remains uncertain.
Euro zone banks lowered the bar on mortgage approvals last quarter for the first time in over two years, but demand for credit kept falling amid high borrowing costs and a stagnant economy.
Fact: Transport Minister Alexis Vafeades clarified that stalled works on the multimillion euro Larnaca port revamp are due to a procedural hold-up by the managing company, Cypriot-Israeli consortium Kition Ocean Holdings.