European markets edge higher as bond yields retreat
- The euro zone economy contracted by 0.7% in the final quarter of 2020, the European statistics agency said Tuesday, revising down its previous flash estimate for a 0.6% quarterly contraction.
- The benchmark U.S. 10-year Treasury yield pulled back from 1.6% to hover at around 1.53% by afternoon trading in Europe.
- Earnings on Tuesday came from Leonardo, Deutsche Post, Continental, Standard Life Aberdeen, ITV and IWG.
(CNBC)/LONDON — European stocks moved higher on Tuesday, drawing momentum from a rise in U.S. stock futures as global bond yields pulled back.
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE | VOLUME |
|---|---|---|---|---|---|---|
| .FTSE | FTSE 100 | FTSE | 6741.79 | 22.66 | 0.34 | 666523163 |
| .GDAXI | DAX | DAX | 14473.44 | 92.53 | 0.64 | 73601033 |
| .FCHI | CAC 40 Index | CAC | 5935.95 | 32.96 | 0.56 | 64405734 |
The pan-European Stoxx 600 gained 0.55% by mid-afternoon, with utilities climbed 2.7% while basic resources dropped 1.8%.
U.S. stock futures are pointing to a strong open on Wall Street Tuesday, with equity markets and particularly the beleaguered Nasdaq 100 bolstered by a retreat in bond yields. The benchmark U.S. 10-year Treasury yield pulled back from 1.6% to hover at around 1.53% by afternoon trade in Europe.
Stocks are looking to build on Monday’s rally, fueled in part by the Senate’s passing of a $1.9 trillion economic relief and stimulus bill on Saturday, which is set to include another round of stimulus checks. President Joe Biden is expected to sign it before key unemployment programs expire on Sunday.
In the U.S. session on Monday, banks, airlines, cruise lines and retailers all rose in hopes of a sharp economic rebound. Meanwhile, in Europe, the pan-European Stoxx 600 closed up 2.2%, with banks adding 3.7% to lead gains as almost all sectors and major indexes advanced.
Shares in Asia-Pacific were mixed on Tuesday with mainland Chinese shares retreating sharply while Japan’s Nikkei 225 closed 0.99% higher.
The euro zone economy contracted by 0.7% in the final quarter of 2020, the European statistics agency said Tuesday, revising down its previous flash estimate for a 0.6% quarterly contraction.
Earnings in focus
In Europe Tuesday, earnings came from Leonardo, Deutsche Post, Continental, Standard Life Aberdeen, ITV and Domino’s Pizza Group.
British investment manager M&G added 2.5% after stronger-than-expected earnings. Leonardo’s full-year results pushed its shares 2.8% higher and Deutsche Post gained 2.2%.
At the top of the Stoxx 600, Swedish cloud computing company Sinch jumped 7.8% in afternoon trade, while Danish jeweler Pandora climbed 7.6% after reporting a rise in year-on-year organic growth in February.
Continental, Standard Life Aberdeen and IWG slid 7.6%, 6.4 and 6.1% respectively following their results, while Dutch coffee and tea group JDE Peet’s fell 6.2% after lowering its forecasts.
