European renewable stocks have fallen 20% since August.Utilities could be particularly at risk, as higher rates will hurt the sector’s 2023 revenues the most. Renewable energy stocks are having a hard time, even in the middle of Europe’s energy crisis.
“Overall, it is this conflict and divergence between the short-term pain of interest-rate worries versus the long-term gain from the policy side, and currently, the short-term pain is winning this battle,” Utilities could be particularly at risk, as higher rates will hurt the sector’s 2023 revenues the most, according to Citigroup strategists led by Beata Manthey. This week is heavy in earnings, with updates from the likes of Verbund, Vestas, Orsted and Scatec in coming days.
While the longer-term policy outlook is supportive as governments look to meet targets to cut emissions, there’s speculation that energy windfall taxes could hit renewable equities in the near term. Germany’s plans would affect firms making electricity from lignite, nuclear, oil, renewables and waste, yet plants fed by gas or charcoal would be spared, fueling fund manager frustration.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: i newspaper - 🏆 8. / 89 Read more »
Source: BBCLookNorth - 🏆 37. / 67 Read more »
Source: BBCNews - 🏆 3. / 97 Read more »
Source: BBCNews - 🏆 3. / 97 Read more »
Bank of England raises interest rates by 0.75 percentage points\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t Now that, Banks still haven't properly separated the merchant from the high street side, VERY NEGATIVE things are likely to be repeated all over again right across the board - So who's for QE 5 then? Hooray! Is anything in the UK better than it was in 2010? Serious question One size fits all.
Source: FT - 🏆 113. / 51 Read more »