17:20 04/23/24
|
|
European markets closed above the waterline on Tuesday, propelled by positive survey data from the Eurozone that boosted investor confidence.
The pan-European Stoxx 600 rose 1.11% to 507.89, while the DAX in Germany gained 1.58% to 18,142.58, while that of France CAC40 rose 0.87% to 8,110.41.
In London, the FTSE100 managed a slight rise of 0.26%, reaching 8,044.81.
London’s leading index hit a new record high during trading hours, beating its previous best ever level the day before.
In foreign exchange markets, the euro fell 0.29% against the pound sterling, trading at 86.01 pence while strengthening 0.38% against the dollar to change hands at 1 $.0696.
“After yesterday’s good session, the FTSE 100 could have been forgiven for experiencing early selling,” said GI Chris Beauchamp, Chief Market Analyst.
“But the index was able to reach a new high before succumbing to some profit-taking in the afternoon session, even if it remained generally up on the day.
“The Bank of England’s chief economist, Huw Pill, will be blamed for this afternoon’s weakness, warning investors not to hope for rate cuts too soon, but the medium-term outlook for UK stocks continue to improve.”
Beauchamp added that U.S. stocks continued to leave last week’s low behind, moving higher, with the Nasdaq 100 leading in percentage terms ahead of Tesla’s release later in the evening.
“The recent weakness in stocks appears to have cleared some of the market froth, dampening sentiment just in time for Big Tech’s all-important earnings run.”
Eurozone economic activity increases in April, US shows signs of slowdown
On the economic front, activity in the euro zone posted robust growth in April, reaching its highest level in almost a year, according to new preliminary data.
THE HCOB The flash composite Purchasing Managers’ Index (PMI) beat expectations, rising to 51.4 from 50.3 in March, marking an 11-month high.
The Services PMI, which increased from 51.5 to 52.9, and the Manufacturing PMI, which increased from 47.1 to 47.3, contributed to this positive trend.
“The euro zone got off to a good start in the second quarter; the HCOB flash PMI composite has taken a significant step into expansionary territory,” said Dr. Cyrus de la Rubia, Hamburg Commercial Bank chief economist.
“This was propelled by the services sector, where activity accelerated further.
“Taking into account various factors, including HCOB According to the PMIs, our GDP forecast suggests an expansion of 0.3% in the second quarter, matching the growth rate seen in the first quarter, both measured against the previous quarter.
In Germany, the private sector also beat forecasts, experiencing a surprise return to growth.
THE HCOB Germany’s composite PMI rose above the critical 50 mark for the first time in 10 months, reaching 50.5 from 47.7 in March.
“Although the manufacturing sector remained in contraction, the rate of decline in industrial production eased and goods producers’ confidence in the outlook rose to its highest level in a year. » HCOB said.
“On the price front, inflation rates for input costs and output prices increased slightly, but were nonetheless broadly in line with their respective long-term averages. »
Meanwhile, the UK private sector continued to expand in April, marking the sixth consecutive month of growth.
THE Global S&P The UK PMI flash composite production index rose to 54.0, its highest level since May 2023.
This growth was mainly driven by a sharp rise in service sector output, although manufacturing output saw a slight decline due to weak market conditions and reduced demand.
In particular, new order volumes in the private sector saw a significant rise, with the growth rate being the strongest since May last year.
“Early data from the April PMI survey indicates that the UK economy’s recovery from last year’s recession has continued to gain momentum,” said Chris Williamson, chief business economist. at the house of S&P Global Market Intelligence.
“Improving growth in the services sector has offset a further slowdown in the manufacturing sector, propelling overall business growth to its fastest level in almost a year, indicating that GDP is growing at a quarterly rate of 0.4% after a gain of 0.3% in the first quarter.
“The recovery has encouraged businesses to hire more workers, which, alongside the rise in the national living wage in April, has led to a sharp rise in cost pressures.”
However, economic activity across the Atlantic in the United States showed signs of slowing last month, according to two closely followed surveys.
Global S&PThe flash PMI for the services sector rose from 51.7 in March to 50.9 in April, while the PMI for the manufacturing sector fell from 54.0 to 51.1.
The reports also indicate a pace of wage reduction not seen since the global financial crisis, excluding the pandemic lockdown period.
Focus on retailers and miners close in the red
In the equity markets, retailers were the center of attention, with Related British Foods there is a substantial increase of 8.98% after owner Primark lifted its annual forecast.
JD Sports Fashion jumped 3.76% after the announcement of the acquisition of the American chain Hibbett for $1.08 billion.
Swiss drug manufacturer Novartis gained 1.81% after raising its full-year forecast following better-than-expected first-quarter results.
Renaultdespite initial losses, reversed this trend to close up 0.4% after reporting a 1.8% increase in first quarter revenue, mainly fueled by the strong performance of its financing activities.
Swedish financial services provider Nordnet jumped 9.01% after publishing its interim results.
On the other hand, mining areas were in the red, with Anglo-American, Antofagasta, Glencore And Rio Tinto all see their stock prices fall.
Reporting by Josh White for Sharecast.com.