European stocks are up firmly in positive territory on Tuesday amid expectations of a good earnings update from U.S. technology major Nvidia, and preliminary reports on manufacturing activity in the month of August.
A drop in bond yields is contributing as well to the positive mood in the stock markets. Several stocks have moved higher on bargain hunting after recent sharp losses.
Investors are also looking ahead to the upcoming Jackson Hole Symposium in Wyoming, where central bankers are meeting on Thursday. Federal Reserve Chairman Jerome Powell is scheduled to speak on Friday.
The pan European Stoxx 600 is up 1.15%. The U.K.’s FTSE 100 is gaiing 0.63%, Germany’s DAX is up 1.05% and France’s CAC 40 is advancing 1.2%, while Switzerland’s SMI is up 0.8%.
In the UK market, Anglo American Plc, Rio Tinto, JD Sports Fashion and Antofagasta are gaining 2 to 2.6%.
CRH, Fresnillo, Kingfisher, Glencore, Centrica, Land Securities, Royal Mail, Segro, Tayler Wimpey, Flutter Entertainment and M&G are advancing 1.2 to 1.8%. Vodafone, Barratt Developments and Smurfit Kappa Group are also notably higher.
In Paris, STMicroElectronics is up nearly 3%. Eurofins Scientific, ArcelorMittal, Essilor, Dassault Systemes, Renault, Veolia, Capgemini, Credit Agricole, Legrand and Alstom are rising 1.7 to 2.8%.
BNP Paribas, Societe Generale, Michelin, Carrefour, Kering, Bouygues, Air Liquide, Stellantis and Airbus are also up with strong gains.
In the German market, Infineon is rising nearly 3.5%. Vonovia is up 3.25%, while SAP, Puma and Siemens Energy are gaining 2.2 to 2.5%.
Adidas, Qiagen, Sartorius, HeidelbergCement, Symrise, BMW, Siemens, Allianz and Deutsche Bank are up 1 to 2%.
In economic news, data from the European Central Bank showed the eurozone recorded a current account surplus of EURO 36.8 billion in June, as against a revised EURO 4.4 billion deficit in the same month last year.
Data released by the Office for National Statistics showed public sector net borrowing in the UK was £3.5 billion in July 2023, up from £0.1 billion in the same month last year.
Public sector net borrowing excluding banks in the UK was £4.3 billion in July 2023, up from £0.9 billion in the same month last year and below market forecasts of £5.0 billion, the data showed.
Market Analysis
European Stocks Rise On Bargain Hunting, Optimism Over Nvidia Results
2023-08-22 11:25:15
