European markets cautiously higher; earnings, U.S. inflation in focus; Commerzbank up 8%
- It was a busy morning of earnings in Europe, with releases from EDF, Allianz, Bayer, Commerzbank, TUI Group and RWE before the bell.
- Investors will be keeping an eye on key U.S. inflation data on Wednesday, with many having grown worried that a rapid rise in inflation may force central banks to raise interest rates and implement other tightening measures.
- Dutch bank ABN Amro also slid 7% after reporting a first-quarter net loss of 54 million euros ($66 million) on the back of a substantial money laundering fine.
(CNBC)_European stocks gained slightly on Wednesday as global markets geared up for key data releases including the latest reading of U.S. inflation.
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE | VOLUME |
|---|---|---|---|---|---|---|
| .FTSE | FTSE 100 | FTSE | 6995.25 | 47.26 | 0.68 | 123555296 |
| .GDAXI | DAX | DAX | 15149.36 | 29.61 | 0.20 | 17729273 |
| .FCHI | CAC 40 Index | CAC | 6276.17 | 8.78 | 0.14 | 15485268 |
The pan-European Stoxx 600 added 0.3% in early trade, with basic resources climbing 1.3% to lead gains while tech stocks bucked the trend to slide 0.5%.
It was a busy morning of earnings in Europe, with releases from EDF, Allianz, Bayer, Commerzbank, TUI Group and RWE before the bell.
Commerzbank shares jumped 8.5% in early trade after the German lender beat first-quarter profit expectations and hiked its full-year revenue outlook.
The only stronger performer in the Stoxx 600 was Ireland’s UDG Healthcare, which saw its London-listed shares soar more than 21% after announcing that private equity firm Clayton, Dubilier & Rice had agreed to buy the company for £2.6 billion ($3.7 billion).
At the bottom of the European blue chip index, Danish hospital equipment maker Ambu plummeted 10% after reporting a fall in quarterly earnings.
Dutch bank ABN Amro also slid 7.4% after reporting a first-quarter net loss of 54 million euros ($66 million) on the back of a substantial money laundering fine.
French video game company Ubisoft dropped 8.2% after warning that profits may fall this financial year.
Investors will be keeping an eye on key U.S. inflation data on Wednesday, with many having grown worried that a rapid rise in inflation may force central banks to raise interest rates and implement other tightening measures. U.S. Federal Reserve Chair Jerome Powell has said any uptick in inflation should be transitory, however.
April’s consumer price index in the U.S. is expected to grow 0.2% from the previous month, representing a 3.6% jump since last year, according to Dow Jones estimates. This jump in the headline consumer price index would be the largest since Sept. 2011. The data will be released at 8:30 a.m. ET on Wednesday.
Asia-Pacific markets were mostly down on Wednesday, with Taiwan’s markets plunging after authorities said they may raise its Covid-19 alert level after an outbreak in recent days.
China released data on Tuesday that showed factory gate prices rose at the fastest rate in three and a half years in April while consumer prices rose at a more modest pace.
U.S. stock futures declined in early trading Wednesday after the Dow’s worst day since February. Dow futures fell more than 50 points while S&P 500 futures and Nasdaq 100 futures also slipped. On Tuesday, technology stocks fell but eventually recovered, spurring selling in the broader market.
Source:- CNBC’s Maggie Fitzgerald contributed to this market report.
