By Peter Nurse
Investing.com – European stock markets traded higher on Tuesday, helped by continued promises of largesse from the Federal Reserve as well as better-than-expected UK employment data.
At 3:30 a.m. ET (8:30 a.m. GMT), Germany traded 0.6% higher, to a record high, France rose 0.6%, hitting a new 52-week high, the Kingdom United climbed 0.7%, while the United Kingdom climbed 0.7%. blue-chip gained 0.7%, also at an all time high.
European stock markets have struggled in recent times over fears that mounting inflationary pressures could force the Federal Reserve to start cutting its super-easy monetary policies in the near future.
However, the Dallas Federal Reserve Chairman on Monday reiterated his view that he does not expect an interest rate hike until next year, while the Federal Reserve Vice Chairman has pointed to the disappointing recent jobs report as proof that the US economy had yet to hit the threshold to warrant scaling up. support massive central bank bond purchases.
The comments helped reassure markets and focused on Wednesday’s release of the Federal Reserve’s April policy meeting, which may further shed some light on policymakers’ outlook on inflation.
Adding to the positive tone, Britain’s rate unexpectedly fell again to 4.8% between January and March, a period the country has spent under a tight Covid lockdown, and hires have increased further in April with the reopening of the country.
In the eurozone, the German Constitutional Court has dismissed a lawsuit aimed at stopping the purchase of government bonds by the ECB, thus contributing to margin sentiment.
“Slowly but surely, Karlsruhe is losing its role as lender of last resort for German critics of the euro,” Carsten Brzeski, economist at ING, said via Twitter.
Next is the release of the eurozone’s first quarter flash estimate, which is expected to show the bloc contracted 0.6% in the first quarter and 1.8% on an annual basis, as the region struggled with new locks.
In corporate news, Generali (MI 🙂 stock rose 1.1%, to a 52-week high, after Italian insurer’s first-quarter profits beat expectations, helped by the positive contribution of non-life and asset management activities.
Imperial Brands (OTC 🙂 stock rose 2.4% after the tobacco maker maintained its full-year outlook despite first-half profit and below-expectations sales, penalized by the drop in the demand of cigarette retailers in the United States.
On the flip side, Vodafone (NASDAQ 🙂 stock fell 6.2% after the mobile operator announced a 1.2% drop in full-year adjusted profit, standing at down from its forecast and missing market expectations, after Covid-19 hits its roaming revenue. and sales of handsets. Upcoming higher capital spending warnings also weighed on the stock.
Oil prices rose on Tuesday, continuing the optimism of the previous session as the major oil-consuming economies of the United States and Europe reopen further thanks to successful vaccination programs.
That said, concerns remain about the Covid-19 situation in India, the world’s third largest consumer of oil, as well as new outbreaks in other parts of Asia, including Taiwan and Singapore.
Investors are now awaiting oil supply data from, due later today.
U.S. crude futures rose 1.1% to $ 67.00 a barrel, while the contract rose 1.1% to $ 70.20, breaking the $ 70 level for the first time since early March.
Additionally, it rose 0.2% to $ 1,870.60 / oz, as it traded 0.4% higher at 1.2199.