European Stocks Hit Record High, Boosted by Generally Positive Earnings – Investing.com

Investing.com – European stock markets rose on Wednesday, hitting record highs as investors digested generally positive quarterly corporate results.

At 5:20 a.m. ET (09:20 GMT), Germany was trading up 0.5%, France’s was trading 0.9% higher and the U.K.’s was up 0.4%.

Additionally, the pan-European index climbed 0.4% to a record high, following Tuesday’s jump of more than 1%.

AB Inbev supports its full-year forecast

Quarterly results continued at a brisk pace on Wednesday, with largely positive results bolstering sentiment.

Anheuser Busch Inbev (EBR:) stock rose 4.7% after the world’s largest brewer said its volumes fell less than expected in the first quarter and reaffirmed its forecast after saying the three-year performance month was encouraging.

Siemens Energy (ETR:) stock rose 12% after the German company raised its full-year outlook for sales, operating profit and free cash flow, while announcing that its second quarter profit before exceptional items more than quadrupled.

Siemens Energy also announced plans to replace the boss of its struggling wind division, also signaling job cuts and capacity reductions as the group strengthens its grip on the loss-making sector.

On the other hand, BMW (ETR:) stock fell more than 3% after the German auto giant said it expects a slight decline in pretax profit this year in due to higher research and development, manufacturing and personnel costs, after reporting a decline during its first quarter. profit margin for the quarter in its automotive segment.

German economy remains weak

fell in March, according to data released on Wednesday, giving further reason for the European Central Bank to begin a cycle of rate cuts in the near future.

Industrial production fell in March by 0.4% from the previous month, after increasing by 1.7% in February on the month, less than the 2.1% before the data revision.

Demand in the manufacturing sector remains weak. German industrial orders fell 0.4% month-on-month in March, data showed on Monday.

The Fed announced a rate cut in June, and much of traders’ attention is focused on the Fed’s outlook, given current uncertainty over when the U.S. central bank will begin cutting rates of interest.

The head of the Minneapolis Fed suggested Tuesday that stubborn inflation and a robust economy could prevent a rate cut this year.

A number of his colleagues are expected to speak later Wednesday, including the vice president, the governor and the president of the Boston Fed.

Crude falls after increase in US inventories

Crude prices fell on Wednesday as industry data showed rising inventories, a sign of weak demand in the world’s largest energy consumer.

As of 5:20 a.m. ET, U.S. crude futures were trading down 1.7% at $77.05 per barrel, while the contract was down 1.6% at $81.86 per barrel.

Data on May 3 showed that U.S. oil inventories increased by 0.5 million barrels in the week to May 3, beating expectations for a withdrawal of 1.4 million barrels.

Official U.S. government inventory data will be expected later in the session.

Meanwhile, Israel continued its offensive against Rafah in southern Gaza on Tuesday, a day after Hamas officials accepted a new ceasefire proposal.

US officials nevertheless said a ceasefire could still be reached, as delegates from both sides met in Cairo for negotiations.

Additionally, the price fell 0.2% to $2,320.70/ounce, while it was trading 0.1% lower at 1.0745.