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European stocks hovered near record highs on Tuesday as traders closely watched corporate earnings and waited for a handful of economic data.
The UK’s Stoxx 600 regional index and the UK’s FTSE 100 both rose 0.1% at the start of trading. The Stoxx previously hit an all-time high on Monday.
The company’s profits published on Tuesday continued to gain momentum, with Paris-based lender Societe Generale and London-based Standard Chartered reporting profits exceeding analysts’ expectations.
StanChart, which focuses on emerging markets, announced a record increase in pre-tax profits to $ 1.15 billion, up 55% from the same period last year. Societe Generale posted its best first-half performance in five years, beating analysts’ expectations for net income by 68 percent.
This year has brought an exceptionally strong profit season on both sides of the Atlantic. Over half of the reporting season in the United States, 86 percent of companies have exceeded earnings expectations, while in Europe, 55 percent have outperformed so far, according to data from FactSet and Morgan Stanley.
“The still healthy earnings outlook is a key factor in our view that the equity bull market remains on solid footing,” UBS analysts wrote in a note, adding that further help came from a reserve. federal government still favorable.
“The growth rate is flattered by the depressed levels of last year. But the results are still impressive compared to the pre-pandemic benefits, ”they added.
Data on US factory orders will be released later Tuesday, while the latest US jobs report is due on Friday. Economists polled by Bloomberg expect July’s non-farm payrolls to build on June’s good results. Last week, the Federal Reserve said it had made “progress” towards its goal of achieving full employment.
In Asia, markets were rocked after Chinese state media criticized the online video game industry, calling it “spiritual opium.” Shares of Tencent, the Chinese internet giant, fell 10.8% before the company announced it would implement new restrictions for minors on its gaming platform.
Competitors NetEase and XD lost 15.7% and 21.8% respectively. The Chinese video game market was worth $ 43.1 billion in 2020, according to Niko Partners, a research and consultancy firm.
Hong Kong’s Hang Seng Index fell 0.35% while China’s CSI 300 was flat, rebounding from its worst month in nearly three years. The Hang Seng Tech Index, which includes Tencent and its peers, fell 1.5%.
The Chinese government’s gaming statements are the latest in a string of criticisms Beijing has leveled at tutoring services and tech companies, scaring investors as the government seeks greater control over key sectors of the industry. ‘economy.
Elsewhere, the world’s benchmark Brent crude oil rose 0.3% to $ 73.09. The pound rose 0.2% against the dollar to buy $ 1.3915 and the euro gained 0.1 to $ 1.881.