FTSE and European markets bounce back as investors eye tech earnings
European stock markets recovered ground anticipated tech earnings pushed stocks higher, with results due from Alphabet and Microsoft after the closing bell.
The FTSE 100 (^FTSE) climbed 0.7% to 7,439 during afternoon trading, while the CAC (^FCHI) rose 0.7% in Paris. In Germany, the DAX (^GDAXI) was up 0.6%.
The London benchmark rose after a three-day selloff as commodity and homebuilder stocks rose, while shares in HSBC Holdings (HSBA.L) and Associated British Foods (ABF.L) slid after their earnings updates.
Taylor Wimpey (TW.L) jumped 3% after the country’s third-largest homebuilder forecast sustained demand in an under-supplied market.
Associated British Foods slid 6.2% after it reported first-half profit nearly doubled, while flagging its Primark clothing business would have to raise prices because of severe inflationary pressure.
HSBC Holdings fell 2.1% after Europe’s biggest bank warned that more share buybacks were unlikely this year as rising inflation and economic weakness had dented its prospects.
Miners were leading gains, with Glencore (GLEN.L) shares up 3.2%, Anglo American (AAL.L) rising 3%, Fresnillo increasing 3.21% , Endeavor Mining up 1.1% and Antofagasta shares rising 3.29%.
US stock indexes were lower after markets opened, ahead of a wave of earnings reports from major technology and blue-chip firms.
Microsoft (MSFT) and Google parent company Alphabet (GOOG) are set to present quarterly results this Tuesday. Amazon (AMZN) and Apple (AAPL) release their quarterly results on 28 April.
Across the pond, the S&P 500 (^GSPC) was down 1.4% and the tech-heavy Nasdaq (^IXIC) fell 2.4%. The Dow Jones (^DJI) also retreated, losing 1% as trading in Wall Street began.
Big technology and other high-growth stocks have dragged on the market recently as the Federal Reserve signals that it will raise its benchmark interest rate aggressively to combat inflation. Higher rates penalise a range of investments, especially stocks.
Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 (^N225) gained 0.4% in Tokyo, and Hong Kong’s Hang Seng (^HSI) advanced 0.5%. The Shanghai Composite (000001.SS) lost 1.4% as fears of a new Chinese lockdown sparked panic buying.
The zero tolerance approach has cast doubt on whether China’s government will achieve its 5.5% GDP target for this year.
Meanwhile, crude oil prices remain above the $100 a barrel mark. Brent crude (BZ=F) was trading at $103 a barrel this Tuesday.
Watch: How does inflation affect interest rates?
