European stocks open higher as investors anticipate tech earnings

European stocks opened higher on Tuesday as global markets recovered from sharp declines in the previous session, driven by fears of Chinese lock-in, inflation and a rise in central bank interest rates.

Ahead of quarterly results from Microsoft and Google-Mother, Alphabet, which investors hope will confirm the logic of investing in businesses with potential pricing power to cope with rising inflation, Europe’s regional stock index Stoxx 600 added 0.9% in early trades.

London’s FTSE 100 added almost 1 per cent, while Germany’s Xetra Dax rose 0.9 per cent. In Asian markets, Hong Kong’s Hong Kong rose 0.5%, while Chinese – listed technology shares rose 3%. However, China’s CSI 300 index fell another 0.8 percent, after falling 4.9 percent Monday on its worst day in more than two years, with panic shopping and fears of a hard lock gripping Beijing.

“There is only one thing that can stabilize the markets, and that is [corporate] Reporting season, “said César Pérez Ruiz, chief investment officer at Pictet Wealth Management.” And better-than-expected numbers from top-tier companies. “Perhaps, he added,” it would be an Amazon rescue case. “

Amazon is releasing its quarterly results on April 28, and so is Apple.

The moves in Europe and Asia came after Wall Street shares Recovered Late in Monday’s meeting, after early falls.

Shares in emerging and emerging markets have fallen 3% since April 21, with Federal Reserve Chairman Jay Powell signaling that the US Federal Reserve is ready raise The interest rate aggressively to fight inflation, which rose to a A record of 40 years in March.

Global stocks also remained under pressure from Russia Continued invasions Into Ukraine when supply chain disruptions and war-related sanctions raise the cost of food and fuel.

The Brent Crude Oil Index on Tuesday added 0.8% to just over $ 103 a barrel on Tuesday, but remains well below the nearly $ 140 price mark reached in early March, amid chances that the EU will ban Russian oil exports – an event that remains the subject of Intense conversations Between member states.

The US dollar, which measures the global reserve currency against six others, was slightly below that Highest point Since the end of March 2020.

The prices of core government bonds – which were under pressure from inflation and interest rate expectations but rose on Monday as traders searched for low-risk assets – were mostly swept away.

The yield on the 10-year US Treasury bill was fixed at 2.83%, and remained close to its highest level since the end of 2018. The corresponding yield in the UK added 0.04 percentage points to 1.88%. Germany’s 10-year yield added 0.02 percentage points to 0.87%.

European stocks open higher as investors anticipate tech earnings Source link European stocks open higher as investors anticipate tech earnings

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