ICEC

European markets to open higher as earnings season remains in focus

European markets are expected to begin Tuesday on an upbeat note, bouncing back from the weaker trade seen in the previous session.

The FTSE 100 is seen rising 27 points at 7,683, the French CAC 40 is set to open higher by 27 points at 5,405 and the German DAX is expected to start off 75 points higher at 12,624, according to IG.

After finishing Monday’s session in the red, Tuesday’s trade is expected to bring a slew of economic news to market-watchers in Europe. First off, earnings season continues to deliver on Tuesday, with Heathrow, LVMH, PSA Group, Randstad, and Norsk Hydro are all reporting their latest financial results.

Before the bell, UBS published results which saw the Swiss lender deliver a 9 percent increase in net profit during the second quarter, to 1.28 billion Swiss francs ($1.29 billion), up from a year ago. Investors will also be keeping a close eye on shares of AMS and Luxottica, which both reported after the close on Monday.

On the data front, services, manufacturing and composite purchasing managers’ index figures for the euro zone are due out around the market open.

In the U.S., Wall Street’s session saw technology shares hit an all-time high on Monday as investors awaited quarterly results from major companies like Alphabet, who reported after the bell. On Tuesday, 3M, Chubb, AT&T, Verizon and Eli Lilly are all set to issue financial updates.

In Asia meantime, investors have been keeping a close eye on bond yields in Japan, following reports that the country’s central bank was actively looking into changes to its policies. The Bank of Japan’s next monetary policy meeting is scheduled for next week.

Elsewhere, investors will be keeping an eye on the political space in regards to trade tensions between the U.S. and major economies, and the future of Brexit.

Concerning the latter, Jeremy Corbyn, leader of Britain’s opposition Labour party, is expected to call on the U.K. government Tuesday to support his vision for a new customs union with the European Union, in order to prevent dodge a “botched” Brexit, Reuters reported.

Source: CNBC

Comments
Loading...