European stocks notch all-time highs on earnings, Xi-Biden talks

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(Businesshala) – Several European stock indexes hit record highs on Tuesday, boosted by strong corporate earnings, statements by the head of the European Central Bank and signs of easing US-China tensions.

The German stock price index DAX graph is pictured on the stock exchange in Frankfurt, Germany on November 15, 2021. REUTERS/Staff

The pan-European STOXX 600 rose 0.3%, extending a record-breaking run as investors saw a crucial meeting between US President Joe Biden and Chinese leader Xi Jinping as a sign of improving ties in fraught. [MKTS/GLOB]

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Blue-chip indexes, which include Germany’s DAX and France’s CAC 40, as well as euro zone stocks, all rose nearly 0.3% to new peaks.

ECB president Christine Lagarde, who is set to speak later in the session, reiterated her push on Monday against market bets for tighter monetary policy.

“We are seeing record highs, but only incremental moves, which are a sign of where we stand now,” said Craig Erlam, senior market analyst at OANDA.

“Central banks are pushing for as long as they can buy time and see if economies are in a good position to raise rates, at which point they can safely begin to change their language. It can support the markets. Used to be. “

The STOXX 600 has scaled new peaks in November as an encouraging earnings season helped investors watch past inflationary pressures and a renewed surge in COVID-19 cases across the continent.

Mining stocks, which have major investments in China, climbed 0.7% on optimism over Sino-US talks. Vodafone had a 5.3% jump in the telecom sector after the company removed its annual free cash flow outlook.

Dutch tech investor Prosus NV rose 2.6% after forecasting higher profits for the first half of 2022 as it raised $12.3 billion in proceeds from selling part of its stake in Tencent.

French luxury group Kering was among the top gainers on the CAC 40, with its top brand Gucci up 2.0% after it said it expected 2021 revenues to be at or above their pre-pandemic levels. HSBC upgraded the stock to “buy”.

Portuguese food retailer Jeronimo Martins fell 11% after Astec, a unit of Heerema Group, sold its entire 5% stake in the company.

Reporting by Anisha Sarkar in Bengaluru; Editing by Uttaresh V and Aditya Soni

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