European markets edge higher with earnings and inflation in focus
- Investors in Europe will be monitoring a host of March inflation data out of Germany, France and Italy on Thursday morning.
- The benchmark U.S. Treasury yield was hovering at around 1.6325% Thursday morning, ahead of the release of closely-watched weekly jobless claims figures and March retail sales data stateside, which are expected to offer further clues on the trajectory of the country’s economic recovery.
(CNBC)/LONDON — European markets advanced modestly on Thursday morning, as investors digest a fresh round of corporate earnings and inflation figures from several major economies.
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE | VOLUME |
|---|---|---|---|---|---|---|
| .FTSE | FTSE 100 | FTSE | 6975.75 | 36.17 | 0.52 | 88184310 |
| .GDAXI | DAX | DAX | 15267.86 | 58.71 | 0.39 | 10916019 |
| .FCHI | CAC 40 Index | CAC | 6221.57 | 12.99 | 0.21 | 8199594 |
The pan-European Stoxx 600 added 0.4% in early trade, with basic resources climbing 1% to lead gains, while banks and insurance stocks bucked the trend to slide 0.4%.
Stocks in Europe received a mixed handover from Asia-Pacific, where Chinese markets declined on Thursday while those in Australia, Japan and South Korea eked out cautious gains.
Futures contracts tied to the major U.S. stock indexes inched higher in premarket trade, after the S&P 500 pulled back from its record highs during Wednesday’s regular session, with pressure on the tech sector offsetting upward momentum after several major banks reported strong earnings.
More high-profile first-quarter results are due Thursday, with Bank of America, Citi and PepsiCo all reporting.
The benchmark U.S. 10-year Treasury yield was hovering at around 1.6183% Thursday morning, retreating slightly ahead of the release of closely-watched weekly jobless claims figures and March retail sales data stateside, which are expected to offer further clues on the trajectory of the country’s economic recovery.
In coronavirus news, the U.S. Centers for Disease Control and Prevention panel decided Wednesday to postpone a decision on Johnson and Johnson’s Covid-19 vaccine following the development of a rare, but potentially life-threatening blood-clotting disorder in six women.
Governments around the world are trying to up the ante on vaccine rollouts as the proliferation of Covid-19 is “growing exponentially,” the World Health Organization warned on Monday.
Investors in Europe will be monitoring a host of March inflation data out of Germany, France and Italy on Thursday morning. Germany’s overall non-harmonized consumer price index came in at 0.5% on a monthly basis and 1.7% year-on-year.
Corporate activity is also in focus in Europe on Thursday, with L’Oreal set to report first-quarter earnings after the bell and Italy’s Unicredit holds its AGM, Oil major Shell also published its annual environmental, social and governance update.
Deliveroo said its orders more than doubled in the first quarter from the same period last year, in its first trading update since the British food delivery company’s high-profile IPO flop.
In terms of individual share price movement, ABB gained 3.5% after the Swedish-Swiss tech manufacturer beat first-quarter profit expectations, while Belgian brewer AB InBev also added 4.2% to lead the Stoxx 600 after Barclays upgraded the stock to “overweight” and raised its price target.
At the bottom of the European blue chip index, British insurer Legal & General fell 3.7%.
Shares of real estate companies with assets in Berlin rose across the board on Thursday after Germany’s Constitutional Court struck down a law putting a rent cap on apartments in the capital. Deutsche Wohnen gained 3.2% following the ruling.
